Australia, Legal system of. The legal system of Australia is based to a large extent on the legal system of England. Many of Australia's current laws derive from English laws that the early settlers brought with them. But Australia is a federation of six states. In a strict sense, it has several legal systems, rather than one. Each state has its own system of state courts and has laws that apply only within the state. In addition, Australia has a system of federal courts and federal laws that apply throughout the country.