The Australian Capital Territory, formerly known as the Federal Capital Territory until 1938 and commonly referred to as the ACT, is a federal territory of Australia containing the Australian capital city of Canberra and some surrounding townships. It is located in the south-east of the country and is an enclave within the state of New South Wales. Founded after Federation as the seat of government for the new nation, all important institutions of the Australian federal government are centred in the territory.