The office has its origin in the 18th-century colonial governors of New South Wales upon its settlement in 1788, and is the oldest continuous institution in Australia.

[2] However, the post still ultimately represented the Government of the United Kingdom until, after continually decreasing involvement by the British government, the passage in 1942 of the Statute of Westminster Adoption Act 1942 (see Statute of Westminster) and the Australia Act 1986, after which the governor became the direct, personal representative of the sovereign.

"[2] The sovereign will also hold an audience with the appointee and will at that time induct the governor-designate as a Companion of the Order of Australia (AC).

The premier may therefore recommend to the King that the viceroy remain in his service for a longer period of time, sometimes upwards of more than seven years.

However, as Northcott was born in Victoria, it was not until Sir Eric Woodward's appointment by Queen Elizabeth II in 1957 that the position was filled by a New South Welshman.

This practice continued until 1996, when Queen Elizabeth II commissioned as her representative Gordon Samuels, a London-born immigrant to Australia.

Early governors were frequently former politicians, many being members of the House of Lords by virtue of their peerage; however they were required by the tenets of constitutional monarchy to be non-partisan while in office.

The Governor grants Royal Assent in the King's name to bills as the final step required to give them the force of law.

While in the past Governors had the discretion to refuse or reserve assent to bills, usually where they were seen as unfavourable to imperial interests, now the only likely grounds on which a bill could be refused if it was passed contrary to manner and form requirements (for example the requirement to hold a referendum to approve of any law that abolished or changed the powers of either of the houses of Parliament).

The Governor hosts members of Australia's Royal Family, as well as foreign royalty and heads of state.

Also as part of international relations, the Governor receives letters of credence and of recall from foreign Consuls-general appointed to Sydney.

The musical vice regal salute—composed of the first and last four bars of the national anthem ("Advance Australia Fair")—is played on the arrival and departure of the Governor from a formal event in which a military or service guard is present.

[11] Premier Neville Wran wrote to the Governor, Sir Roden Cutler, on 25 November 1980 advising: "His Excellency’s Ministers of State now consider that there should be a change in the Personal Standard of the Governor of New South Wales, such change to take effect at the conclusion of His Excellency’s term of office.

[14] Between 1850 and 1861, the Governor of New South Wales was titled Governor-General, in an early attempt at federalism imposed by Earl Grey.

As South Australia (1836), Tasmania (January 1855) and Victoria (May 1855) obtained responsible government, their lieutenant-Governors were replaced by Governors.

This arrangement seemed incongruous with the Commonwealth of Australia's independent dominion status conferred by the Statute of Westminster, and with the federal structure.

With the federation of the Australian colonies in 1901, it was announced that Government House was to serve as the secondary residence of the new governor-general of Australia.

On 16 January 1996, Premier Bob Carr announced that the next governor would be Gordon Samuels, that he would not live or work at Government House and that he would retain his appointment as chairman of the New South Wales Law Reform Commission.

On these changes, Carr said: "The Office of the Governor should be less associated with pomp and ceremony, less encumbered by anachronistic protocol, more in tune with the character of the people.

In 1799 the second governor, John Hunter, had the remains of Arthur Phillip's cottage cleared away, and a more permanent building erected on the same site.

In 1957, seen as unnecessary and expensive, Hillview was put up for sale and purchased from the state government by Edwin Klein.