History of Canberra Rush at the time, Melbourne was Australia's largest city and a potential place for the capital. However Sydney was Australia's oldest city, and so also had a justifiable claim to host the new nation's Federal polity. Western Australia, South Australia and Victoria, Melbourne's state of location —supported Melbourne. However, New South Wales (the largest colony) and its neighbouring northern state, Queensland, favoured Sydney. Perhaps one or another of the two colonial capitals might have eventually been acceptable to the smaller states, but the Sydney–Melbourne rivalry was such that neither city would ever agree to the other one becoming the capital.
Victoria (Australia) municipal areas. The state of Victoria is the second largest economy in Australia after New South Wales, accounting for a quarter of the nation's gross domestic product. The total gross state product (GSP) at current prices for Victoria was A$374 billion in June 2016, with a GSP per capita of A$60,595. The economy grew by 1.0 per cent in the 2015–16 financial year, less than the Australian average of 2.7 per cent. Finance and insurance is Victoria's largest income producing sector, while the health care and social assistance sector is the state's biggest employer. The shift towards service industries in