It could be argued that Australia becoming a Federation was a stupid thing to do but most people agree that it was a great idea. In the next few paragraphs, the reasons how and why Australia became a Federation will be discussed. Some of the reasons 'why' are trade (NSW/Victoria rivalry), communication and fear of invasion by Germany. On January 1, 1901, Australia's six self-governing colonies became states in an "indissoluble Federal Commonwealth." In other words, January 1st, 1901, is when Australia became a Federation. For over fifty years many individuals had dreamed of this and occasionally false starts were made, but it wasn't until the 1890's that the Federation mo