The Australian Capital Territory (ACT), known as the Federal Capital Territory until 1938, is an internal territory of Australia. Canberra, the capital city of Australia, is situated within the territory and is the territory's primate city. The Australian Capital Territory is located in southeastern Australia as an enclave surrounded by the state of New South Wales. The territory was excised from New South Wales in 1911 to serve as the seat of government for the Commonwealth, in accordance with Section 125 of the Australian Constitution. Today, the ACT hosts important institutions, such as the Parliament of Australia and High Court of Australia, as well as the headquarters of many federal departments and agencies.