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Three political parties dominate the center of the Australian political spectrum: the Liberal Party (LP), nominally representing urban business-related groups; the Nationals, nominally representing rural interests; and the Australian Labor Party (ALP), nominally representing the trade unions and liberal groups. Although embracing some leftists, the ALP traditionally has been moderately socialist in its policies and approaches to social issues. All political groups are tied by tradition to domestic welfare policies that have kept Australia in the forefront of societies offering extensive social welfare programs. Australia's social welfare safety net has been reduced in recent years, however, in response to budgetary pressures and a changing political outlook. There is strong bipartisan sentiment on many international issues, including Australia's commitment to its alliance with the United States.
The Liberal Party/Nationals coalition came to power in 1996, ending 13 years of ALP government and electing John Howard Prime Minister. Re-elected in October 1998, November 2001, and October 2004, the coalition improved its majority in the House of Representatives and appeared set to control the Senate (vote-counting is underway at the time of this update).
Howard's conservative coalition moved quickly to reduce Australia's government deficit and the influence of organized labor, and reform Australia's tax and social welfare systems. The Howard government also has accelerated the pace of privatization, beginning with the government-owned telecommunications corporation. The Howard government has continued the foreign policy of its predecessors, based on relations with four key countries: the United States, Japan, China, and Indonesia. The Howard government strongly supports U.S. engagement in the Asia-Pacific region and has sent troops as part of the coalitions in Afghanistan and Iraq. National elections took place October 9, 2004, and likely will take place again in late 2007 or early 2008.
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