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In page Liberal Party of Australia:

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The Liberal Party's organisation is dominated by the six state divisions, reflecting the party's original commitment to a federalised system of government (a commitment which was strongly maintained by all Liberal governments bar the Gorton government until 1983, but was to a large extent abandoned by the Howard government, which showed strong centralising tendencies).[citation needed] Menzies deliberately created a weak national party machine and strong state divisions.[citation needed] Party policy is made almost entirely by the parliamentary parties, not by the party's rank-and-file members, although Liberal party members do have a degree of influence over party policy.[1]