The Australian Capital Territory is actually located within New South Wales, but is (almost) a separate state, as it is the capital territory of the Commonwealth of Australia, subject to legislation by the Commonwealth Parliament. ACT is the smallest region of Australia, but also has the largest inland city: its capital, Canberra. Out of all the top universities in Australia, Canberra hosts the highest ranking: Australian National University, which is also a Go8 member.
The top universities in ACT are:
Australian National University (ranked 27 in the world; 1st in Australia).
University of Canberra (ranked 601-650 in the world; 27th in Australia)