The Australian labour movement began in the early 19th century and since the late 19th century has included industrial (Australian unions) and political wings (Australian Labor Party). Trade unions in Australia may be organised (i.e., formed) on the basis of craft unionism, general unionism, or industrial unionism. Almost all unions in Australia are affiliated with the Australian Council of Trade Unions (ACTU), many of which have undergone a significant process of amalgamations, especially in the late 1980s and early 1990s. The leadership and membership of unions hold and have at other times held a wide range of political views, including communist, socialist and right-wing views.

According to ABS figures, in August 2013, there were 1.7 million members of trade unions in relation to their main job (17% of all employees). A further 4% did not know whether they were trade union members or not, while 1% were trade union members not in conjunction with their main job. Of those who were a trade union member in relation to their main job, over two-thirds (68%) had been members for five years or more. Trade union membership has steadily declined over recent years, with 2013 being the lowest proportion in the history of the ABS series. According to ACTU figures, the number of members of trade unions in 1983 was 2,376,900 but by 2002 it was 1,833,700, and declining.

The Australian Labor Party at both a federal and state/colony level pre-dates, among others, both the British Labour Party and the New Zealand Labour Party in party formation, government, and policy implementation. In particular, the 1910 federal election represented a number of firsts: it was Australia's first elected federal majority government; Australia's first elected Senate majority; the world's first Labour Party majority government at a national level; after the 1904 Chris Watson minority government the world's second Labour Party government at a national level; and the first time it controlled both houses of a bicameral legislature.