Kirribilli Agreement

A Kirribilli agreement refers, in Australian culture, to an agreement - typically confidential - between a leader and their deputy leader for the handing over of power on the satisfaction of an agreed precondition.

The term was first used to describe a 1988 agreement between the then Prime Minister of Australia, Bob Hawke, and his Commonwealth Treasurer, and deputy leader, Paul Keating which was effected at Kirribilli House. Hawke agreed that he would resign in favour of Keating at an unspecified time after the 1990 election and preceding any subsequent election. On Keating's insistence, the undertaking was witnessed by ACTU secretary Bill Kelty, and Sir Peter Abeles, a businessman and friend of Hawke. In 1991, having secured a fourth term a year earlier and having had his leadership capacity belittled to the assembled Canberra press gallery in a deemed "treacherous" speech by Keating, Hawke reneged on the agreement, prompting Keating to resign as treasurer and challenge him for the prime ministership. Although his initial challenge in June 1991 failed, he again challenged Hawke in December 1991 and won.

John Howard had such an agreement with his treasurer and deputy party leader Peter Costello. As witnessed, manually noted, and later reported by then Defence Minister Ian McLachlan:"(An) undertaking (was) given by John Howard ... in Peter Costello’s room that if Alexander Downer resigned and Howard became PM then one and a half terms would be enough and he would hand over to Peter Costello." Howard reported that the meeting took place but that no such deal was struck.

As Howard's 64th birthday approached in 2003, he asserted his intention to stay on as leader. Costello made several public statements that did little to hide his distemper at the decision. Howard went on to remain leader of the Liberal Party of Australia when the Liberal-National coalition won the 2004 federal election and in December of that year became Australia's second longest serving prime minister.

After the 2004 election Costello did not exercise his right to challenge for the leadership. In speculation throughout 2005 several Liberal ministers began to be mentioned as possible challengers to Peter Costello's inheritance. They were defence minister Brendan Nelson, Minister for Foreign Affairs Alexander Downer, health minister Tony Abbott and backbencher Malcolm Turnbull. All in time themselves served as Liberal party leader either before or subsequent to that year.

There was a further period supposition that Costello would challenge Howard for the leadership in the lead-up to the 2007 federal election. Howard remained prime minister and Costello treasurer until the coalition government lost power in the election of November 2007. John Howard also lost his parliamentary seat, and Peter Costello declined to assume the leadership of the now opposition Liberal Party or even to serve his full elected term as a Member of Parliament.