Most of the power, and getting things done, resides with the states. The main power the federal government has comes from it holding the chequbook.It's very easy to see why Federation was needed. Really doesn't take long before the country divides along State boundaries. Unfortunately, Federation was based on there being a functional Federal Government to administer. The current situation is that the various State governments are doing what they see as best for their States. Nothing wrong with that, in the absence of central leadership, it's obviously their job.
Unfortunately, for the country as a whole, it's a mess. I've spent most of July travelling domestically and it's crazy. If you transit through Melbourne airport, have you been in Victoria? Well, depends which direction you were travelling...! Some places look at NSW hot spots, others condemn the entire State. WA are quietly minding their own business and who could blame them? Half the country with two sealed roads in; time to chill and eat your own crayfish!