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State and territory courts

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Each state and territory has a court hierarchy of its own, with the jurisdictions of each court varying from state to state and territory to territory. However, all states and territories have a Supreme Court, which is a superior court of record and is the highest court within that state or territory. These courts also have appeal divisions, known as the Full Court or Court of Appeal of the Supreme Court (in civil matters), or the Court of Criminal Appeal (in criminal matters.)

Decisions of the High Court are binding on all Australian courts, including state and territory Supreme Courts.

The state and territory courts can sometimes exercise federal jurisdiction (i.e. rule on matters subject to federal legislation.) However, an attempt by the states and the Commonwealth to pass legislation that would cross-vest state judicial powers in the Federal courts was struck down by the High Court in Re Wakim [1999] HCA 27 as being unconstitutional. Notwithstanding this failure, however, both state and federal courts can exercise an "accrued jurisdiction," which enables them to hear all legal issues arising from a single set of facts. This enables all courts to deal with virtually all issues arising from the facts of a case, provided that the particular court has jurisdiction to hear the principal cause of action.

Most of the states have two further levels of courts, which are comparable across the country. The District Court (or County Court in Victoria) handles most criminal trials for less serious indictable offences, and most civil matters below a threshold (usually around $1 million). The Magistrates' Court (or Local Court) handles summary matters and smaller civil matters. In jurisdictions without District or County Courts, most of those matters are dealt with by the Supreme Courts. In Tasmania and the two mainland territories, however, there is only a Magistrates Court below the Supreme Court.

In the three external territories (that is, territories not directly forming part of the Commonwealth of Australia but administered by the Commonwealth) there is a Supreme Court and a Magistrates Court or Court of Petty Sessions. The Supreme Courts are staffed by judges of other courts, usually the Federal Court. Appeals from those courts lie to the Full Federal Court. As these territories have very small populations, the courts only sit from time to time as needed. The three external territories are Norfolk Island, Christmas Island and Cocos (Keeling) Islands.

The remaining external territories (in Antarctica) do not have permanent courts. In the event of a case arising from these territories, the courts of the ACT have jurisdiction.