Canberra is the federal capital of Australia. It occupies part of the Australian Capital Territory in southeastern Australia and is about 150 miles (240 km) southwest of Sydney. It lies astride the Molonglo River. In this article, we’ll explore the two capitals of Australia: Canberra as the official capital and Sydney as the cultural and historical powerhouse. We’ll discuss their significance, why Australia chose Canberra as its capital, and how these two cities contribute to the nation’s identity. Located at the Australian Capital Territory's northern end is Canberra, the capital and largest inland city of Australia. Australia has eight capital cities, including Canberra, the national capital. See the map and list of Australia states and capitals in alphabetical order, and learn about their locations and populations.