The Australian federal system, which came into existence in 1901, has generally worked satisfactorily, even though its dynamics have been altered substantially in the years since. Today there is much debate about its future, recently highlighted by the High Court’s 2006 WorkChoices judgment. There is a general consensus that the Australian federal system does not work as well as it might, and the question for Commonwealth and state governments is what should be done to enhance its performance and reputation. Scott Bennett gives an overview of Australian federalism, noting its strengths and weaknesses, and asks: where does the system go from here?