The Australian Premiers' Conference held in Melbourne decides to locate Australia's capital city, Canberra, between Sydney and Melbourne.

Canberra ( (listen) KAN-b-r)

is the capital city of Australia. Founded following the federation of the colonies of Australia as the seat of government for the new nation, it is Australia's largest inland city and the eighth-largest city overall. Unusual among Australian cities, it is an entirely planned city. The city is located at the northern end of the Australian Capital Territory at the northern tip of the Australian Alps, the country's highest mountain range. As of June 2020, Canberra's estimated population was 431,380.The area chosen for the capital had been inhabited by Indigenous Australians for up to 21,000 years, with the principal group being the Ngunnawal people. European settlement commenced in the first half of the 19th century, as evidenced by surviving landmarks such as St John's Anglican Church and Blundells Cottage. On 1 January 1901, federation of the colonies of Australia was achieved. Following a long dispute over whether Sydney or Melbourne should be the national capital, a compromise was reached: the new capital would be built in New South Wales, so long as it was at least 100 miles (160 km) from Sydney. The capital city was founded and formally named as Canberra in 1913. A blueprint by American architects Walter Burley Griffin and Marion Mahony Griffin was selected after an international design contest, and construction commenced in 1913. The Griffins' plan featured geometric motifs and was centred on axes aligned with significant topographical landmarks such as Black Mountain, Mount Ainslie, Capital Hill and City Hill. Canberra's mountainous location makes it the only mainland Australian city where snow-capped mountains can be seen in winter; although snow in the city itself is rare.

As the seat of the Government of Australia, Canberra is home to many important institutions of the federal government, national monuments and museums. This includes Parliament House, Government House, the High Court and the headquarters of numerous government agencies. It is the location of many social and cultural institutions of national significance such as the Australian War Memorial, the Australian National University, the Royal Australian Mint, the Australian Institute of Sport, the National Gallery, the National Museum and the National Library. The city is home to many important institutions of the Australian Defence Force including the Royal Military College Duntroon and the Australian Defence Force Academy. It hosts all foreign embassies in Australia as well as regional headquarters of many international organisations, not-for-profit groups, lobbying groups and professional associations.

Canberra has been ranked among the world's best cities to live and visit. Although the Commonwealth Government remains the largest single employer in Canberra, it is no longer the majority employer. Other major industries have developed in the city, including in health care, professional services, education and training, retail, accommodation and food, and construction. Compared to the national averages, the unemployment rate is lower and the average income higher; tertiary education levels are higher, while the population is younger. At the 2016 Census, 32% of Canberra's inhabitants were reported as having been born overseas.Canberra's design is influenced by the garden city movement and incorporates significant areas of natural vegetation. Its design can be viewed from its highest point at the Telstra Tower and the summit of Mount Ainslie. Other notable features include the National Arboretum, born out of the 2003 Canberra bushfires, and Lake Burley Griffin, named for the city's architects. Highlights in the annual calendar of cultural events include Floriade, the largest flower festival in the Southern Hemisphere, the Enlighten Festival, Skyfire, the National Multicultural Festival and Summernats. Canberra's main sporting venues are Canberra Stadium and Manuka Oval. The city is served with domestic and international flights at Canberra Airport, while interstate train and coach services depart from Canberra Railway Station and the Jolimont Centre respectively. City Interchange is the main hub of Canberra's bus and light rail transport network.

Melbourne ( (listen) MEL-bərn) (Boonwurrung: Naarm) is the capital and most-populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a 9,993 km2 (3,858 sq mi) metropolitan area known as Greater Melbourne, comprising an urban agglomeration of 31 local municipalities, although the name is also used specifically for the local municipality of City of Melbourne based around its central business area. The city occupies much of the northern and eastern coastlines of Port Phillip Bay and spreads into the Mornington Peninsula and the hinterlands towards the Yarra Valley and the Dandenong and Macedon Ranges. It has a population over 5 million (19% of the population of Australia, as per 2020), mostly residing to the east side of the city centre, and its inhabitants are commonly referred to as "Melburnians".The area now occupied by Melbourne was home to Aboriginal peoples for over 40,000 years and served as a popular meeting place for local Kulin nation clans, Naarm being the traditional Boon wurrung name for Port Phillip Bay. A short-lived penal settlement was built at Port Phillip, then part of the British colony of New South Wales, in 1803, but it was not until 1835, with the arrival of free settlers from Van Diemen’s Land (modern-day Tasmania), that Melbourne was founded. It was incorporated as a Crown settlement in 1837, and named after the then British Prime Minister, William Lamb, 2nd Viscount Melbourne. In 1851, four years after Queen Victoria declared it a city, Melbourne became the capital of the new colony of Victoria. During the 1850s Victorian gold rush, the city entered a lengthy boom period that, by the late 1880s, had transformed it into one of the world's largest and wealthiest metropolises. After the federation of Australia in 1901, it served as the interim seat of government of the new nation until Canberra became the permanent capital in 1927. Today, it is a leading financial centre in the Asia-Pacific region and ranks 23rd globally in the 2021 Global Financial Centres Index.Melbourne is home to many of Australia's best-known landmarks, such as the Melbourne Cricket Ground, the National Gallery of Victoria and the World Heritage-listed Royal Exhibition Building. Noted for its cultural heritage, the city gave rise to Australian rules football, Australian impressionism and Australian cinema, and has more recently been recognised as a UNESCO City of Literature and a global centre for street art, live music and theatre. It hosts major annual international events, such as the Australian Grand Prix and the Australian Open, and also hosted the 1956 Summer Olympics and the 2006 Commonwealth Games. Melbourne consistently ranked as the world's most liveable city for much of the 2010s.Melbourne Airport, also known as the Tullamarine Airport, is the second-busiest airport in Australia, and the Port of Melbourne is the nation's busiest seaport. Its main metropolitan rail terminus is Flinders Street station and its main regional rail and road coach terminus is Southern Cross station. It also has Australia's most extensive freeway network and the largest urban tram network in the world.