History of Sydney
From 1788 to 1900 Sydney was the capital of the British colony of New South Wales. An elected city council was established in 1840. In 1900, Sydney became a state capital, when New South Wales voted to join the Australian Federation. Sydney today is Australia's largest city and a major international capital of culture and finance. The city has played host to many international events, including the 2000 Summer Olympics.
History of Australia (1851–1900)
In 1858 a new gold rush began in the far north, which led in 1859 to the separation of Queensland as a new colony. New South Wales thus attained its present borders, although what is now the Northern Territory remained part of the colony until 1863, when it was handed over to South Australia. The separation and rapid growth of Victoria and Queensland mark the real beginning of New South Wales as a political and economic entity distinct from the other Australian colonies. Rivalry between New South Wales and Victoria was intense throughout the second half of the 19th century, and the two colonies developed in different directions. Once the easy gold ran out by about 1860, Victoria absorbed the surplus labour force from the gold fields in manufacturing, protected by high tariff walls. Victoria became the Australian stronghold of protectionism, liberalism and radicalism. New South Wales, which was less radically affected demographically by the gold rushes, remained more conservative, still dominated politically by the squatter class and its allies in the Sydney business community. New South Wales, as a trading and exporting colony, remained wedded to free trade.