the Australian Capital Territory an area in southeast Australia that includes the capital city Canberra and Jervis Bay. Political entity (pop., 2001: 321,680), southeastern Australia. A capital territory was mandated by the 1901 Australian constitution; the site was chosen in 1908. It lies within New South Wales and consists of Canberra and the area around Jervis Bay. Parliament moved there from Melbourne in 1927. In 1989 the Territory received responsibility for self-government similar to that held by Australian states