This kit, the second of four learning circles on civics and citizenship, explores Australia's federal system of government and the three spheres of government. Introductory materials include lists of 53 print resources, 47 Internet sites, and 7 videos and CDs; and a glossary. Session guides are provided for six sessions: The Three Spheres of Government; Local Government; State and Territory Government; The Federal System; Citizens and Intergovernment Relations; and The Future of the Federal System. Components of each session guide include the following: (1) an introduction that outlines the objective and aims and lists suggested activities in the session, background documents provided, and resources; (2) the suggested activities with discussion, suggested activities, optional extra activities, and case studies highlighted in block format; and (3) the background documents. (YLB)