Governor George Gipps (1791 – 1847), In 1838 Sir George Gipps became Governor. He was an extremely unpopular choice, even though he proved to be a great benefit to the colony. During his time there was a monetary crisis in New South Wales – Due to extravagance and change in the land laws (Wakefield Policy).

Land Laws in New South Wales – New South Wales became divided into the Sydney district, the Brisbane district and the Melbourne district -In the two former, land to be sold for not less than twelve shillings per acre; in the latter, for not less than one pound per acre – Resulting land speculations – These, together with the prevailing extravagance, cause many insolvencies – Unsettled state of the colony.

Immigration in New South Wales – Money received from land employed in assisting immigration – Governor George Gipps gives too many bounty orders – Miserable condition of the immigrants who arrive.

Melbourne Petitions for Separation – The people of Port Phillip seek to be made a separate colony.

Representative Government, 1843 – First Elective Council appointed – Eighteen chosen by people of New South Wales proper; six by people of Port Phillip. Still, the people of Port Phillip petitioned for its separation from New South Wales. It seemed as though they had finally had agreement from England, when a new government was elected.

Election of Earl Grey – People of Port Phillip not satisfied with this arrangement – Refused to send representatives and instead elected Earl Grey, in order to show their small appreciation of the privilege – Arrangements made in England for separation.

Sir Charles Fitzroy becomes Governor, 1846 – Troubles himself very little about public matters – In 1851 Port Phillip made into a separate colony, under the title Victoria.