The Australian government operates as a federal parliamentary democracy, meaning that it has multiple levels of government, including federal, state, and local. The federal government is responsible for national issues, while state governments handle regional matters. The system is based on the Constitution of Australia, which outlines the powers and responsibilities of each level of government. The Parliament of Australia consists of two houses: the House of Representatives and the Senate. Members of the House are elected by the public, while Senators represent the states and territories. The Prime Minister, who leads the government, is typically the leader of the majority party in the House of Representatives.