During 1994 Australia took two significant actions in relation to its maritime claims. On 1 August it declared a 200 nautical mile exclusive economic zone (EEZ) and on 5 October it ratified the UNCLOS. The declaration of the EEZ was the final stage in a lengthy process which reflects the impact of federalism and international developments in the management of Australia's offshore areas. This article examines the background to these recent developments and considers the implications of these maritime claims on Australian management of its offshore areas. In particular, the article reviews the constitutional, legal and political elements which have influenced Australia's particular approach towards its offshore areas.