The Shire of Banana is a local government area located in the Capricorn region of Queensland, Australia, inland from the regional city of Gladstone. The shire was named after the first township in the region (Banana), which in turn was named for the burial site of a huge dun coloured bullock named 'Banana'. The council sits in the town of Biloela, which is the largest town in the Shire.

Local government is the third-level of government in Australia, administered with limited autonomy under the states and territories, and in turn beneath the federal government. Local government is not mentioned in the Constitution of Australia, and two referendums in 1974 and 1988 to alter the Constitution relating to local government were unsuccessful. Every state/territory government recognises local government in its own respective constitution. Unlike the two-tier local government system in Canada or the United States, there is only one tier of local government in each Australian state/territory, with no distinction between counties and cities.