The annual tournament will consist of 16 teams from the existing National Premier Leagues (NPL) state-based competitions and will take place following the NPL season.[2][3]
The competition's focus is to improve player development and to boost the overall standing of the game in Australia by generating new interest and revenue.[4]
History
Although informally talked about for many years[by whom?], momentum for the idea of a national second division increased in October 2016.[5] In March 2017 "The Association of Australian Football Clubs (AAFC) Limited" was established, with the goal of opening dialogue with Football Federation Australia (FFA) and various other stakeholders about establishing a national second division.[6] The board consists of several members representing their respective states and is chaired by Nick Galatas. In January 2018 the AAFC released a timeline for implementation of the league, requesting expressions of interest from clubs for participation in The Championship.[7]
In February 2019, the AAFC announced they were of the belief that the competition could be up and running by the 2020–21 season.[8] On 3 June 2019 the new national second division was given the green light by FFA, paving the way for the next stage of planning and a revised start date of the 2021–22 season.[9]
On 15 September 2020, a provisional list of 35 "partner clubs" was released to the public. The official partners included National Premier League clubs from every state in Australia.[10]
In October 2020, Football Australia released "XI Principles for the future of Australian football", also known as Vision 2035, which specifically categorised the creation of a second-tier division as part of football restructuring.[11]
In a January 2021 report, the AAFC claimed that the establishment of a national second division competition would be affordable and feasible.[12]
In a July 2021 report, a Football Australia spokesperson confirmed to ESPN Australia that the competition remained a priority to the federation, while its chairman Chris Nikou declared in May that he was "expecting [an NSD model] to come to the Football Australia board in the second half of this year, and [would] love to see a second division up for the 2022–23 season".[13]
In late 2021, advocates for a national second-tier in Australia have been campaigning for the better part of two decades to introduce what is, at this point, a global footballing standard. The year 2022 may be an optimistic target, however with Football Australia CEO James Johnson pointing to the pandemic as a buffer to the NSD's unavoidable progression. The NSD would feature 12 foundation clubs with plans to expand up to 16 within the first four years.[14] Officials also aimed to avoid the American-based franchise system and expressed it would become more aligned to the European format, which included promotion and relegation.[15][16]
In February 2022, a report titled "A Genuine National Second Division of Football in Australia" was released.[17] AAFC believed it is time for a merit-based competition structure to be introduced as meritocracy is both the "Australian way" and occurs in most competitions around the world. The report has been funded by the Partner Clubs with financial analysis undertaken by MI Associates.[18] Association of Australian Football Clubs (AAFC) Chairman Nick Galatas commented that "all the pieces are there for a National Second Division competition for Australian football and the time to implement is now".[19]
In 2022, Football Australia was working towards March 2024 as its preferred start date,[20] with exprssions of interest sought in February 2023.[21] At that point a "Champions League" format was proposed by Football Australia (and opposed by the AAFC[22]) where top teams would play in the national competition concurrently with their regional NPL league.[23]
In March 2023, the bidding phase concluded, with 32 teams having entered bids; a total of 26 teams were accepted to progress to a formal proposal by August 2023 and evaluation of bids by late November 2023. The first season was to commence in March or April 2025,[24] with teams playing a full home and away season.[25]
After the announcement of the eight inaugural teams, Football Australia announced the Second Division would feature ten or twelve teams, with a double round-robin format (18 or 22 matches) followed by a Finals Series towards the conclusion of the regular season.[26]
On 29 January 2024, Football Australia announced that the final selection process for the final clubs had begun with 24 undisclosed teams.[27] Football Australia confirmed on 31 October 2024 that the first season of the league will begin in October 2025.[28][29]
On 12 February 2025, Football Australia revealed the competition would be named the "Australian Championship".[30]
Competition format
The inaugural edition of the competition will consist of 16 teams and run from October to December 2025. The 16 teams will include 8 "Foundation Clubs" and 8 National Premier Leagues clubs who will be invited based on results from their season.
In the knockout stage, teams will be divided into four groups of four. Groups will be played as a double round robin (six matches per team) with the top-two team in each group advancing. The knockout stage will consist of three rounds with single leg matchups.[29]
Clubs
Foundation clubs
It was announced in November 2023 that eight teams had been selected as foundation clubs for the inaugural Second Division.[26]
The original reluctance to start the tournament by 2022 was met with criticism due to a lack of detail about how the competition would function[46]
The processes of Football Australia were also criticised by teams that did not progress after the formal Expressions of Interest period, including Blacktown City FC and Peninsula Power FC.[47][48]
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2025 Australian Championship 
