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Australia was originally established as the British-governed colony of New South Wales. Australia was not a single British colony, but rather six separate colonies. These colonies became states which federated on 1 January 1901, coming together as the Commonwealth of Australia.

Although the Constitution of the Commonwealth of Australia came into effect at Federation, this did not mean that Australia was now independent of Britain. When the UK approved colonial federation, it simply meant that the six self-governing states of Australia allocated some functions to a federal authority. Australia gained the status of a Dominion, which meant it remained a self-governing colony within the British Empire, with the Head of State being the British monarch. The British government appointed Australia's Governor-General and State Governors, who answered to the British government.

All Dominions essentially ceased being colonies within the British Empire when they were declared "equal in status, in no way subordinate one to another in any aspect of their domestic or external affairs, though united by a common allegiance to the Crown, and freely associated as members of the British Commonwealth of Nations" at the Imperial Conference of 1926. The Statute of Westminster 1931 ratified the discussions of the Imperial Conference. This meant that Australia and other Dominions such as South Africa, New Zealand and Canada could now conduct treaties and agreements with foreign powers, and manage their own military strategies. No longer were the Australian Governor-General, Parliament and individual governors answerable to the UK. The British monarch could only act on the advice of the Australian Government, and the Governor-General was no longer appointed by and answerable to the British monarch.

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