Editing History of Australia (section)

===Labor governments: 1983–1996===
[[File:(14) 1987 Bob Hawke, Moscow, meeting with Gorbachev (cropped).jpg|thumb|[[Bob Hawke]] with [[List of leaders of the Soviet Union|Soviet leader]] [[Mikhail Gorbachev]] in 1987. Hawke went on to become the longest-serving Labor Prime Minister.]]

The [[Hawke government]] pursued a mixture of free market reforms and consensus politics featuring "summits" of government representatives, business leaders, trade unions and non-government organisations in order to reach consensus on key issues such as economic policy and tax reform. The centrepiece of this policy mix was an Accord with trade unions under which wage demands would be curtailed in return for increased social benefits. Welfare payments were increased and better targeted to those on low incomes, and a retirement benefits scheme (superannuation) was extended to most employees. A new universal health insurance scheme, Medicare, was introduced.<ref name="NAA-2011">{{Cite web|title=Australia's Prime Ministers, Hawke in Office|url=http://primeministers.naa.gov.au/primeministers/hawke/in-office.aspx|url-status=dead|access-date=11 April 2021|website=National Archives of Australia|archive-date=14 November 2011|archive-url=https://web.archive.org/web/20111114204343/http://primeministers.naa.gov.au/primeministers/hawke/in-office.aspx}}</ref> The Treasurer Paul Keating oversaw a program of deregulation and micro-economic reforms which broke with the [[Keynesian economics]] that had traditionally been favoured by the Labor party.<ref>Tim Battin, "A Break from the Past: The Labor Party and the Political Economy of Keynesian Social Democracy", ''Australian Journal of Political Science'', July 1993, Vol. 28 Issue 2, pp. 221–41</ref> These reforms included floating the Australian dollar, deregulating capital markets and allowing competition from foreign banks. Business regulation and competition policy was streamlined, tariffs and quotas on imports were reduced, and a number of government enterprises were privatised. The higher education system was restructured and significantly expanded, partly funded by the reintroduction of fees in the form of student loans and "contributions" [[Tertiary education fees in Australia|(HECS)]].<ref>{{Cite book|last=Walter|first=James|title=The Cambridge History of Australia, Volume 2, The Commonwealth of Australia|publisher=Cambridge University Press|year=2013|isbn=9781107011540|editor-last=Bashford|editor-first=Alison|location=Melbourne|pages=166, 179|chapter=Growth resumed, 1983-2000|editor-last2=MacIntyre|editor-first2=Stuart}}</ref> Paul Kelly concludes that, "In the 1980s both Labor and non-Labor underwent internal philosophical revolutions to support a new set of ideas—faith in markets, deregulation, a reduced role for government, low protection and the creation of a new cooperative enterprise culture."<ref>Paul Kelly, ''The end of certainty: The story of the 1980s'' (1992) p. 660</ref>

The government's environmental interventions included stopping the Franklin Dam in Tasmania, banning new uranium mines at Jabiluka, and proposing Kakadu National park for world heritage listing.<ref name="NAA-2011" /> In foreign policy, the government maintained strong relations with the US and was instrumental in the formation of the Asia Pacific Economic Cooperation (APEC) group. Australia contributed naval ships and troops to UN forces in the Gulf War after Iraq had invaded Kuwait in 1990.<ref name="NAA-2011" /><ref>David Lowe (2013) "Security". In Bashford and Macintyre (eds) The Cambridge History of Australia, Volume 2, pp 511–12</ref>

[[File:Opening parliament house 1988.jpg|thumb|left|Opening of [[Parliament House, Canberra|the new Parliament House]] during the [[Australian Bicentenary]], May 1988.]]

The government took other initiatives aimed at fostering national unity. The [[Australia Act 1986]] eliminated the last vestiges of British legal authority at the federal level. The [[Australian Bicentenary]] in 1988 was the focus of year-long celebrations with multicultural themes. The World Expo 88 was held in Brisbane and a new [[Parliament House, Canberra|Parliament House]] in Canberra was opened.<ref>Bashford and MacIntyre (eds) The Cambridge History of Australia, Volume 2, pp 178–9, 532</ref>

Strong economic growth, falling unemployment, an unstable opposition, and Bob Hawke's popularity with the public contributed to the re-election of the Hawke government in 1984, 1987 and 1990. However, the economy went into [[Early 1990s recession in Australia|recession in 1990]] and by late 1991 the unemployment rate had risen above 10 per cent. With the government's popularity falling, [[Paul Keating]] successfully challenged for the leadership and became prime minister in December 1991.<ref name="NAA-2011" />

The Keating government's first priority was economic recovery. In February 1992 it released the "One Nation" job creation package and later legislated tax cuts to corporations and individuals to boost economic growth. Unemployment reached 11.4 per cent in 1992—the highest since the [[Great Depression in Australia]]. The [[Coalition (Australia)|Liberal-National opposition]] had proposed an [[Fightback! (policy)|ambitious plan of economic reform]] to take to the [[1993 Australian federal election|1993 Election]], including the introduction of a [[Goods and Services Tax (Australia)|Goods and Services Tax]]. Keating campaigned strongly against the tax and was returned to office in March 1993.<ref>{{Cite web|title=Australia's Prime Ministers, Keating in Office|url=http://primeministers.naa.gov.au/primeministers/keating/in-office.aspx|url-status=live|access-date=11 April 2021|website=National Archives of Australia|archive-url=https://web.archive.org/web/20110315152244/http://primeministers.naa.gov.au/primeministers/keating/in-office.aspx|archive-date=15 March 2011}}</ref>

[[File:Paul Keating delivering the Redfern Speech at Redfern Park, 1992.tif|thumb|right|[[Paul Keating]] delivering the [[Redfern Park Speech]] on 10 December 1992]]

In May 1994 a more ambitious "Working Nation" jobs program was introduced. The Keating government also pursued a number of "big picture" issues throughout its two terms including increased political and economic engagement in the Asia Pacific region, [[Reconciliation in Australia|Indigenous reconciliation]], and an [[Australian republic]]. The government engaged closely with the Indonesian President, [[Suharto]] and other regional partners, and successfully campaigned to increase the role of [[APEC]] as a major forum for strategic and economic co-operation.<ref>{{Cite book|last=Day|first=David|title=Australian Prime Ministers|publisher=New Holland|year=2016|isbn=9781742579337|editor-last=Grattan|editor-first=Michelle|location=Sydney|pages=424|chapter=Paul John Keating}}</ref> A Council for Aboriginal Reconciliation was established and, following the High Court of Australia's historic [[Mabo decision]] in 1992, the first national [[Native Title Act 1993|Native Title legislation]] was introduced to regulate claims and provide compensation for loss of native title.<ref>Bashford and MacIntyre (eds). The Cambridge History of Australia, Volume 2. pp. 182, 353–4</ref> In 1993, Keating established a [[Republic Advisory Committee]] to examine options for Australia becoming a republic. The government also introduced family payments and a superannuation guarantee with compulsory employer contributions.<ref>Walter, James (2013). "Growth resumed, 1983–2000". In Bashford and MacIntyre (eds.). The Cambridge History of Australia, Volume 2.  pp. 167–8, 179.</ref>

Under the Hawke government the annual migration intake had more than doubled from 54,500 in 1984–85 to more than 120,000 in 1989–90. The Keating government responded to community concerns about the pace of immigration by cutting the immigration intake and introducing mandatory detention for illegal immigrants arriving without a valid visa. Immigration fell to 67,900 in 1992–93.<ref>Walter (2013). pp. 177–78</ref><ref name="Spinks-2010"/>

With foreign debt, inflation and unemployment still stubbornly high, Keating lost the March [[1996 Australian federal election|1996 Election]] to the Liberals' [[John Howard]].<ref>Day, David (2016). "Paul John Keating". In Grattan, Michelle (ed.). ''Australian Prime Ministers''. Sydney: New Holland. pp 432–4. {{ISBN|9781742579337}}.</ref><ref name="http">{{cite web|title=Primeministers.naa.gov.au|url=http://primeministers.naa.gov.au/primeministers/keating/in-office.aspx|url-status=dead|archive-url=https://web.archive.org/web/20101202031451/http://primeministers.naa.gov.au/primeministers/keating/in-office.aspx|archive-date=2 December 2010|access-date=14 July 2011|publisher=Primeministers.naa.gov.au}}</ref>