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The capital of Australia is Canberra, which is in the Australian Capital Territory (ACT). 

Canberra became the capital of Australia in 1927 and is located in the the Australian Capital Territory (ACT). A project to find a national capital was commenced in the 1890s prior to Federation. The on-going rivalry between Sydney and Melbourne prohibited either city from consideration as the national capital. It was decided that, following Federation in 1901, the nation's capital should be situated between the two cities. A location was chosen which was 248km from Sydney and 483km from Melbourne. The first survey peg marking the beginning of the development of the city of Canberra was driven in on 20 February 1913.