The signing of the Seat of Government Surrender Act by Charles Wade, Premier of New South Wales, formalized the transfer of approximately 1,200 square miles of land to the Commonwealth of Australia, enabling the creation of the Australian Capital Territory (ACT). This initiative was part of a broader plan to establish a national capital that would reflect the aspirations of a united Australia, particularly as the nation had only recently federated in 1901. The selection of the site, located in New South Wales, was driven by the need to find a location that was geographically central to the Australian states, rather than any coastal city, thus ensuring a sense of inclusion and balance among Australian regions.

The act stipulated that the land, which included the town of Queanbeyan, would be used for the construction of important government buildings and infrastructure that would support the new Commonwealth government. This transfer crystallized discussions that had been ongoing since federation about where the national seat of government should be located, with options debated between capital cities such as Melbourne and Sydney. Ultimately, the decision to establish an entirely new city allowed for meticulous planning and architectural design intended to represent the ideals of the nation.

Following the signing, the area began evolving rapidly as planners envisioned a functional and picturesque capital. The founding of Canberra was a landmark occasion that not only solidified the political structure of the Commonwealth but also set a precedent for island nation capitals to be situated away from major urban centers. Over the following years, the infrastructure of the territory developed significantly, culminating in the establishment of the national government and its administrative functions in Canberra. This strategic political maneuver foreshadowed the development of a uniquely Australian identity and unity through centralized governance.