On 1 January 1901, the six separate British colonies united to form the Commonwealth of Australia. The federation created a single nation with its own constitution while remaining part of the British Empire. Edmund Barton became Australia’s first Prime Minister. The new federal system divided powers between the national government and the states. The event marked the beginning of modern Australian governance. Celebrations were held across the country, particularly in Sydney. Federation Day is now commemorated annually as part of New Year’s Day.