| STATE AND TERRITORY DIFFERENCES
The confusion between state and territory arises because the Northern Territory and the Australian Capital Territory are often treated like states. These two territories, along with Norfolk Island, are self-governing territories. In these three cases, the Commonwealth passed a law allowing each territory to convene a parliament and make their own laws in a similar manner to the states. Unlike the states, whose powers are defined through the Constitution, the powers of these territories are defined in the Commonwealth law which grants them the right of self-government. This also means that the Commonwealth can alter or revoke these powers at will.
http://www.australia.gov.au/Government_in_Australia_FAQ#difference |