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New South Wales was established to build a penal colony. This was a solution to dealing with the overcrowding prisons and hulks. -
Van Diemen's Land was declared a separate colony. It was used as a secondary punishment for convicts who had committed crimes in New South Wales. -
The Swan River Colony was established for free settlers that were not convicts. After this idea failed, it became another penal colony in 1850. -
South Australia was established as a free colony. -
Northern Australia was established, although after failing miserably for six months, it was finally reinstated back as New South Wales by 1849. It was supposed to assist the British promote trade with the eastern Malay Archipelago, alongside their desire to claim all of Australia at the time. -
Victoria was separated from New South Wales. Victoria was helpful in the aspect of economics and farming. -
Queensland started out as a simple convict settlement at Moreton Bay. In 1859, it was actually established. -
South Australia was established for the housing of migrants. In 1861, South Australia gained New South wales 'panhandle.' -
In 1862, Queensland was expanded. In 1863, part of New South Wales became South Australia, then expanding South Australia in size, power and wealth.