Western Australia (WA) is Australia’s largest state and is a place of true contrasts: from desert in the east to 13,000 kilometres (8,000 miles) of pristine coastline on the west. The state’s capital is Perth; the fourth most populous city in Australia and famed for its uncrowded beaches, parklands and fresh seafood. Katter Australia Party founder, federal MP Bob Katter, said the Tropic of Capricorn could be an easy, straight boundary to set for a new North Queensland state. Territory of North Australia (1927-31) Territory of Central Australia (1927-31) Territory of Papua (1902-49) Territory of New Guinea (1920-49) Territory of Papua and New Guinea (1949-72) Background and overview. The states started as separate British colonies before Federation (in 1901).