How does Australia’s federal system divide power between national and state governments?

Australia operates as a federation under a written constitution that defines the division of powers between the Commonwealth (federal) government and the states.1

The federal government is explicitly granted authority over specific national interests, including:
* Defense
* Foreign policy
* Immigration
* Customs and excise
* The post office1

All powers not specifically assigned to the federal government by the constitution are known as residual powers. These are reserved for the states, which maintain responsibility for:
* Justice
* Education
* Health
* Internal transport1

Constitutional disputes regarding this division of power are resolved by the High Court of Australia. While the Australian Capital Territory also possesses a legislative assembly, its powers differ from those of the states; the federal government retains a veto over its legislation and maintains planning control over areas of national significance.12