If you asked most people to name the capital of Australia, they’d probably say Sydney or Melbourne. It’s a common mix-up. But the actual capital of Australia is Canberra, a city created to represent the whole country.
It’s a story that captures the ambitious and collaborative spirit of Australia. At Remitly, we know that moving to a new country means getting to know these stories, too. So, in this article, we’ll explain how Canberra became the capital and what makes it such a special part of Australia’s identity.
How Australia chose its capital
When Australia officially became a nation in 1901, everyone agreed on one thing: it needed a capital city. What no one could agree on was where it should be.
Sydney thought it was the obvious choice. It was the first city, the biggest port, and already world-famous for its harbour. Melbourne had other ideas. It was booming on the back of the gold rush, a cultural hub that had also become the financial centre of the country.
Both had strong arguments, which meant that the debates went on for years, with neither city willing to concede.
The art of compromise
In true Australian fashion, the solution was a fair one. If neither Sydney nor Melbourne could take the prize, the capital would be built somewhere between them. It would sit within New South Wales, but at least 100 miles (160 kilometres) away from Sydney, just to keep things even.
The Canberra decision
After inspecting potential sites, Parliament eventually settled on Canberra in 1908. The spot was peaceful, scenic, and roughly halfway between the two rivals. It wasn’t the biggest or flashiest choice, but it was a decision that symbolised unity, which Australia was determined to get right from the start.
Why Canberra was chosen
Canberra wasn’t selected by chance. It met every requirement that the new Commonwealth needed for its home base.
Tucked in the Molonglo River Valley, surrounded by hills and bushland, Canberra had clean water, a mild climate, and beautiful scenery. It was also far enough inland to feel safe from naval attack, which was an important consideration back in the early 1900s.
In 1911, the area officially became the Australian Capital Territory (ACT), belonging to all Australians rather than a single state. It was a neutral space, designed to represent the whole country.
A name with meaning
In 1913, a ceremony was held, and Canberra was formally named. The name comes from the Ngunnawal language and is thought to mean “meeting place.” It’s hard to imagine a better fit for a city that was literally built to bring people together.
The Ngunnawal people, the Traditional Custodians of the land, still play an important role in Canberra’s culture. The city’s open design and connection to nature reflect this deep respect for the land.
Designing and building Australia’s capital
Once the location was settled, the next step was imagining what the capital of a young, optimistic nation should look like.
The global design competition
In 1912, an international competition was launched to design the new capital. More than 130 entries came in from around the world. The winners were Walter Burley Griffin and Marion Mahony Griffin, a visionary couple from Chicago who dreamed up something extraordinary.
Their plan was based on the “garden city” idea, which aimed to balance city living with open green space. Marion was a fine illustrator as well as an architect, and her detailed drawings were considered so beautiful that they practically brought the vision to life.
A city shaped by nature
The Griffins didn’t want Canberra to look like a typical grid city. Instead, they designed it around nature. The city would be built around an area containing hills (Capital Hill, City Hill, and Russell Hill), forming what is now known as the National Triangle.
They used geometric lines, open boulevards, and natural contours, ensuring the city blended seamlessly into the landscape rather than sitting on top of it.
From plans to progress
Construction officially began in 1913, but it wasn’t smooth sailing. The First World War and a lack of funding slowed progress considerably.
However, once peace was restored, things began to move in earnest. In 1927 the Old Parliament House opened, and Canberra officially became Australia’s working capital. It still is today: decades after the old building was inaugurated, the New Parliament House opened in 1988.
Lake Burley Griffin
One of Walter Burley Griffin’s original ideas was a grand lake to centre the city. That idea finally became reality in 1963, and Lake Burley Griffin now stretches through the heart of Canberra, connecting its northern and southern suburbs.
Locals stroll, cycle, and picnic along its shores, and festivals light up its waters every year. It’s hard to imagine Canberra without it.
Canberra today: the capital with a community spirit
Canberra may have started as a political project, but today it’s much more than a seat of government. It’s a place where history, culture, and everyday life come together beautifully.
The heart of Australia’s government
Canberra is home to Parliament House, the High Court, and more than 100 embassies. But unlike other capitals, it doesn’t feel closed off or formal. You can visit Parliament for free, walk through the halls, or even relax on the rooftop lawns where locals gather for lunch.
The city’s design still reflects the idea that democracy belongs to everyone, and that openness extends to the high-profile universities that call Canberra home.
A centre of learning and innovation
Canberra is a university city as well as a seat of government. The Australian National University (ANU) and the University of Canberra attract students from across Australia and the world. Research and innovation thrive here, especially in areas like renewable energy, defence technology, and space science.
It’s the kind of city where you’ll meet people who are passionate about progress, whether they’re working in policy, education, or sustainability.
What newcomers love about life in Canberra
For immigrants and newcomers, Canberra is one of Australia’s easiest cities to settle into. It’s safe, friendly, and surrounded by natural beauty.
A city that feels like a community
With around 480,000 residents, Canberra has the energy of a city but the friendliness of a country town. Roughly 30% of people were born overseas, so you’ll hear a mix of languages and see cultural diversity throughout the city. But it also honours its deep First Nations heritage. The Ngunnawal people, whose language helped name the city as we mentioned, remain central to Canberra’s community and cultural life.
Whatever their background, locals are generally down-to-earth and happy to help, whether you’re figuring out public transport or just finding the best coffee spot.
Cost of living and work opportunities
Compared with Sydney or Melbourne, Canberra tends to be a bit more affordable, at least when it comes to housing and commuting. The city’s job market is strong, providing roles in public service, education, healthcare, and tech, but you might actually have to pay more for some groceries and utilities in Canberra than in other major Aussie cities.
Public transport is reliable, but many people choose to cycle or drive because you can cross town in around 30 minutes. That means more time for Australia’s famous barbecues, hiking, or weekend trips to the coast.
Canberra’s green lifestyle
Canberra is known as the Bush Capital, and with good reason. More than 70% of the ACT is parkland or reserve. You can finish work and be on a mountain trail within half an hour.
Each spring, the Floriade Festival fills the city with colour, and the Multicultural Festival brings food and music from around the globe. Life in Canberra feels open, easy, and balanced, perfect for newcomers finding their feet Down Under.
Canberra’s modern identity
Canberra has quietly become one of Australia’s most forward-thinking cities, and it’s doing things differently. The Australian capital has run on 100% renewable electricity since 2020, making it a world leader in urban sustainability. It’s a place where solar panels outnumber skyscrapers, and community gardens sit alongside government buildings.
Innovation here goes beyond science. It’s in how Canberra was planned, how people live, and how it keeps evolving.
Fun facts about Australia’s capital
Canberra is one of the few purpose-built capitals in the world, joining the ranks of Brasília and Washington, D.C. Unlike many other Australian cities, it experiences all four distinct seasons: crisp autumn leaves, occasionally snowy winter mornings, sunny spring days, and warm, dry summers.
With so much space left to nature in the region, the air is clean, there’s easy access to nature, and locals live a lifestyle that feels calm even during busy weeks. Canberra also consistently ranks among Australia’s most educated and liveable cities, thanks to its strong job market, cultural institutions, and sense of community.
For one of the best views in the whole country, head up to Mount Ainslie Lookout. From there, you can see the perfect symmetry of Walter Burley Griffin’s original design unfold below. You’ll see Parliament House at the centre and the Brindabella Ranges stretching out in the distance. It’s especially breathtaking at sunset, when the whole city seems to glow golden.
Visiting Canberra
If you’re new to Australia, visiting Canberra is a great way to get to know the country’s heart and spirit.
Must-see attractions
- Parliament House
Take a free guided tour or head to the rooftop lawns for panoramic views of the city. - Australian War Memorial
A powerful and moving place that connects Australia’s history with its present. - Lake Burley Griffin
Walk, cycle, or paddle along its shores and take in Canberra’s most iconic landmarks, reflected in the water. - National Gallery of Australia
Home to one of the world’s largest collections of Indigenous art, alongside international exhibitions. - National Museum of Australia
Discover the country’s past and the stories that have shaped its diverse identity. - National Library of Australia
A peaceful space to explore rare books, exhibitions, and architecture inspired by the nation’s history. - Australian National Botanic Gardens
Wander through native plants and spot local wildlife just minutes from the city centre. - Old Bus Depot Markets
Open on Sundays, these lively markets are full of local food, crafts, and friendly faces.
Getting around
Canberra was designed for convenience, and you’ll notice it from the moment you arrive. Buses and light rail connect the main suburbs, and cycling paths are wide and well-maintained.
For newcomers, this makes daily life simple. Many residents even choose to live car-free, instead relying on public transport, bikes, or e-scooters. Canberra’s layout was planned with people in mind, and it shows. Moving through the city feels easy, relaxed, and stress-free compared to most major cities.
Australia’s living symbol of unity
Canberra wasn’t built to compete with Sydney or Melbourne; instead, it was built to unite Australians. Every park, avenue, and lake tells the story of a country that values fairness and collaboration.
Today, the country’s capital is a place where ideas grow, cultures mix, and nature is always close by. If you’re starting your new chapter in Australia, we think Canberra is well worth visiting or even spending some time living there. You might be surprised at how easy it is to feel at home in the Bush Capital.
FAQs
Is Canberra really the capital of Australia?
Yes. Canberra is the official capital. It was chosen in 1908, founded in 1913, and officially became the working capital in 1927 when Parliament moved from Melbourne.
Why isn’t Sydney the capital of Australia?
Sydney and Melbourne both wanted the title after Federation. To keep things fair, Australia created a brand-new city halfway between the two. That city became Canberra.
What does “Canberra” mean?
It comes from the Ngunnawal word “Kambera”, which is thought to mean “meeting place.” The name reflects Canberra’s purpose, which is to unite the country.
How big is Canberra compared to other cities?
Canberra’s population is around 480,000, smaller than Sydney or Melbourne, but it regularly ranks as one of Australia’s most liveable cities thanks to its open space, safety, and work-life balance.