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Abstract This study employs percolation theory to investigate the hierarchical organisation of Australian urban centres through the connectivity of their road networks. The analysis demonstrates how discrete urban clusters have developed into integrated regional entities, delineating the pivotal distance thresholds that regulate these urban transitions. The study reveals the interconnections between disparate urban clusters, shaped by their functional differentiation and historical development. Furthermore, the study identifies a dichotomy of urban agglomeration forces and a persistent spatial disconnection between Australia’s wider urban landscape. This highlights the interplay between urban densification and peripheral growth. It suggests the need for new thinking on potential integrated governance structures that bridge urban development with broader social and economic policies across regional and national scales. Additionally, the study emphasises the growing importance of national coordination in Australian urban development planning to ensure regional consistency, equity, and productivity.