In the Australian context, a distinction is drawn between 'states' and 'territories'.
The term 'states' is used to refer to those parts of Australia that were self-governing before they agreed to join in the Commonwealth of Australia, such as Victoria and Queensland.
The term 'territory' is used to refer to those parts of Australia that were not self-governing when the Commonwealth of Australia was created. Two territories are now self-governing: the remainder are governed directly by the federal government.