Canberra, in the Australian Capital Territory, is Australia's capital city. After Federation in 1901, a site for the capital was sought, and Canberra was selected.The Australian Capital Territory was declared on 1 January 1911 and an international competition was held to design the new capital city of Australia.or 21,000 years the Canberra region has been home to the Ngunnawal people. Evidence of their long occupation exists in archeological evidence found at Birrigai Rock Shelter at Tidbinbilla Nature Reserve, in rock paintings in Namadgi National Park and in other places throughout the Australian Capital Territory (ACT).