The Australian Labor Party was founded as a federal party prior to the first sitting of the Australian Parliament in 1901, but is descended from Labour parties founded in the various Australian colonies by the emerging labour movement in Australia, formally beginning in 1891. Labor is thus the country's oldest political party. Colonial Labour parties contested seats from 1891, and federal seats, following Federation, at the 1901 federal election. Labor was the first party in Australia to win a majority in either house of the Australian Parliament, at the 1910 federal election.

The ALP predates both the British Labour Party and New Zealand Labour Party in party formation, government, and policy implementation.

The Australian Labor Party is a democratic and federal party, which consists of both individual members and affiliated trade unions, who between them decide the party's policies, elect its governing bodies and choose its candidates for public office. The majority of trade unions in Australia are affiliated to the party, and their affiliation fees, based on the size of their memberships, makes up a large part of the party's income. The party consists of six state and two territory branches, each of which consists of local branches which any Australian resident can join, plus affiliated trade unions.