The capital city of Australia is Canberra, which is located in the Australian Capital Territory (ACT). Established in 1913, Canberra was designed as a compromise between the rival cities of Sydney and Melbourne, each vying for the status of capital. It was chosen for its central location and to help establish a new city that represented the nation’s identity. Canberra is known for its planned layout, bright green parks, and significant national institutions, including Parliament House, the National Gallery, and various embassies. The city serves as the political and administrative center of Australia.