History of Australia Since 1945 - 1980s and 1990s

1980s and 1990s

Bob Hawke, a less polarising Labor leader than Whitlam, defeated Fraser at the 1983 Election. The new government stopped the Franklin Dam project via the High Court of Australia. The 1980s saw severe concerns about Australia's future economic health take hold, with severe current account deficits and high unemployment at times. Hawke, together with treasurer Paul Keating undertook micro-economic and industrial relations reform designed to increase efficiency and competitiveness. After the initial failure of the Whitlam model and partial dismantling under Fraser, Hawke re-established a new, universal system of health insurance called Medicare. Hawke and Keating abandoned traditional Labor support for tariffs to protect industry and jobs. They moved to deregulate Australia’s financial system and ‘floated’ the Australian dollar. An agreement was reached with trade unions to moderate wage demands and accept more flexible working condition arrangements by accepting tax cuts in return. Ultimately, many of the reforms, continued by successive governments, appear to have been successful in pushing the economy along.

The Australian Bicentenary was celebrated in 1988 along with the opening of a new Parliament House in Canberra. The following year the Australian Capital Territory achieved self-government and Jervis Bay became a separate territory administered by the Minister for Territories.

A supporter of the US alliance, Hawke committed Australian naval forces to the Gulf War, following the 1990 invasion of Kuwait by Iraq. After four successful elections, but amid a deterioring Australian economy and rising unemployment, the intense rivalry between Hawke and Keating led the Labor Party to replace Hawke as leader and Paul Keating became Prime Minister in 1991.

Unemployment reached 11.4% in 1992 - the highest since the Great Depression. The Liberal-National Opposition had proposed an ambitious plan of economic reform to take to the 1993 Election, including the introduction of a Goods and Services Tax. Keating shuffled treasurers and campaigned strongly against the tax and won the 1993 Election. During his time in office, Keating emphasised links to the Asia Pacific region, co-operating closely with the Indonesian President, Suharto, and campaigned to increase the role of APEC as a major forum for economic co-operation. Keating was active in indigenous affairs and the High Court of Australia's historic Mabo decision in 1992 required a legislative response to recognition of Indigenous title to land, culminating in the Native Title Act 1993 and the Land Fund Act 1994. In 1993, Keating established a Republic Advisory Committee, to examine options for Australia becoming a republic. With foreign debt, interest rates and unemployment still high, and after a series of ministerial resignations, Keating lost the 1996 Election to the Liberals' John Howard.