Each of the eight state/territory organisations are represented by a Men's and Women's Scratch team and a Men's and Women's Restricted team. Each team is comprised of six bowlers.

The organisations compete as four person teams over three days, bowling seven games on each day. Each bowler is required to bowl at least 10 games during the Challenge.

In each match, the opposing teams compete for a maximum of six points. All scores are scratch in the scratch division and handicapped in the restricted division. Each bowler competes against the bowler in the same position in the opposing team. One point is awarded for each winning bowler plus an additional two points for the team victory.

At the conclusion of the Men's and Women's Scratch and Restricted Challenge, the teams with the most points are declared the champions. The organisation with the most combined points in the Scratch and Restricted divisions is declared the champion of their respective division.

The state with the most points, combining the Men's and Women's Scratch and Restricted teams points, will be declared the Champion state.