Except for universities, the governments of the states and territories manage all aspects of education. The federal government is responsible for funding higher education and provides supplementary funding to the states. The national government also develops national education policies and guidelines.

The original state-sponsored system guaranteed an even spread of universities, and it is still somewhat unusual for undergraduates to attend universities outside their home states. Most of the older public universities were founded in the colonial era, and all were established before World War I. In chronological order of establishment, they are the Universities of Sydney  (1850), Melbourne (1853), Adelaide (1874), Tasmania (in Hobart, 1890), Queensland (Brisbane, 1909), and Western Australia (Perth, 1911). The Australian National University in Canberra, a research-oriented institution, was established by the federal government in 1946.

There are some 40 higher educational institutions with operating grants from the Commonwealth Department of Education, Training and Youth Affairs. There is also an Australian Film, Television and Radio School, a National Institute of Dramatic Art, and an Australian Defence Force Academy. Two private universities, Bond University in Queensland and Notre Dame University in Western Australia, also provide higher education instruction. Except for the Australian National University and the Australian Maritime College, universities operate under their respective state and territory legislation and are regarded as autonomous institutions.