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===Howard government: 1996–2007=== [[File:John Howard May 2006.jpg|thumb|right|[[John Howard]], the 25th [[Prime Minister of Australia]] held office from 1996 to 2007, the second-longest tenure in history]] [[File:2000 Summer Olympics opening ceremony 4.JPEG|thumb|[[2000 Summer Olympics opening ceremony|Opening ceremony]] of the [[2000 Summer Olympics]] in Sydney.]] [[John Howard]] with a Liberal–National Party coalition served as [[Prime Minister of Australia|Prime Minister]] from 1996 until 2007, winning re-election in 1998, 2001 and 2004 to become the second-longest serving prime minister after Menzies. The Howard government introduced a nationwide [[Gun laws in Australia|gun control scheme]] following a [[Port Arthur massacre (Australia)|mass shooting at Port Arthur]]. The coalition introduced [[Workplace Relations Act 1996|industrial relations reforms in 1996]] which promoted individual contracts and enterprise bargaining. In 2006, it introduced the [[WorkChoices]] legislation, which made it easier for small businesses to terminate employment. After the 1996 election, Howard and treasurer [[Peter Costello]] proposed a [[Goods and Services Tax (Australia)|Goods and Services Tax]] (GST) which they successfully took to the electorate in 1998 and implemented in July 2000.<ref name="autogenerated3">{{cite web|title=Primeministers.naa.gov.au|url=http://primeministers.naa.gov.au/primeministers/howard/in-office.aspx|url-status=dead|archive-url=https://web.archive.org/web/20110315150934/http://primeministers.naa.gov.au/primeministers/howard/in-office.aspx|archive-date=15 March 2011|access-date=14 July 2011|publisher=Primeministers.naa.gov.au}}</ref> The government responded to the populist anti-immigration policies of [[Pauline Hanson]] and her [[One Nation Party|One Nation party]] by publicly criticising elites and political correctness and emphasising Australian values.<ref>Walter (2013). pp. 169, 178</ref><ref>{{Cite book|last=Grattan|first=Michelle|title=Australian Prime Ministers|year=2016|pages=452–3|chapter=John Winston Howard}}</ref> The coalition initially cut immigration intakes, abolished the [[Office of Multicultural Affairs]] and other multicultural agencies, and introduced citizenship tests for migrants.<ref>Bashford and MacIntyre (eds) (2013). pp 178, 205–7</ref> Following a sharp increase in unauthorised arrivals by boat from 1999, the government opened new mandatory detention centres in remote areas of Australia and issued temporary visas for those found to be refugees. Following the [[Children Overboard affair]] and the [[Tampa Affair]] in 2001, the government introduced the [[Pacific Solution]], which involved moving unauthorised immigrants to detention centres in Nauru and Papua New Guinea while their refugee status was determined, as well as a policy of turning back vessels intercepted at sea.<ref>{{Cite book|last=Goot|first=Murray|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=203–4|chapter=The new millenium|editor-last2=MacIntyre|editor-first2=Stuart}}</ref> In Indigenous affairs the Prime Minister rejected calls for a treaty with Indigenous Australians and an apology for past actions which had harmed them. Instead, the government pursued a policy of "practical reconciliation" involving specific measures to improve Indigenous education, health, employment and housing. In response to the High Court's decision in ''[[Wik Peoples v Queensland]]'', in 1996, the government amended native title legislation to limit native title claims. In 2007, following the release of the "[[Little Children are Sacred]]" report detailing widespread abuse in Aboriginal communities, the Howard government launched the [[Northern Territory National Emergency Response|Northern Territory Intervention]] in order to create a safe environment for Indigenous children. The government's response was criticised by the co-chairs of the report, but was supported by the Labor opposition.<ref>Bashford and MacIntyre (eds) The Cambridge History of Australia, Volume 2. (2013). pp. 182, 207–09.</ref> Honouring an election commitment, the Howard government set up a people's convention on an Australian republic. The resulting 1999 referendum on a republic failed. Howard, a monarchist, became the only Australian Prime Minister to publicly oppose a constitutional amendment he had put to the people.<ref>Walter, James (2013). p 179</ref><ref>Grattan, Michelle (2016). "John Winston Howard". p. 457</ref> [[File:Australian soldiers Dili 2000.jpg|thumb|left|The [[International Force East Timor#Countries contributing to INTERFET|Australian-led]] coalition [[International Force East Timor|INTERFET]] during the [[1999 East Timorese crisis|East Timor crisis]] from 1999 to 2002]] [[File:Australian soldiers arrive at Honiara, Solomon Islands in July 2003.jpg|thumb|left|200px|The Australian-led multinational force in response to the [[History of Solomon Islands#Ethnic violence (1999–2003)|Solomon Islands conflict]] (1999–2003).<br> [[Regional Assistance Mission to Solomon Islands|Operation RAMSI]] (2003–2017) became Australia's largest effort in [[Politics of Solomon Islands|democracy]] and [[nation-building]]]] In 1999, Australia led a [[International Force for East Timor|United Nations force into East Timor]] to help establish democracy and independence for that nation, following political violence. Australia also committed to other peacekeeping and stabilisation operations: notably in [[Autonomous Region of Bougainville|Bougainville]], including [[Operation Bel Isi]] (1998–2003); as well as [[Operation Helpem Fren]] and the Australian-led [[Regional Assistance Mission to Solomon Islands]] (RAMSI) in the early 2000s; and the [[2006 East Timorese crisis]].<ref>{{cite web|title=Official History of Peacekeeping, Humanitarian and Post–Cold War Operations | Australian War Memorial|url=http://www.awm.gov.au/histories/peacekeeping/volumes/four.asp|access-date=14 July 2011|publisher=Awm.gov.au|archive-date=23 June 2011|archive-url=https://web.archive.org/web/20110623112657/http://www.awm.gov.au/histories/peacekeeping/volumes/four.asp|url-status=dead}}</ref> Following the September 2001 terrorist attacks on the US and the subsequent War on Terror, Australia committed troops to the [[War in Afghanistan (2001–present)|Afghanistan War]] and the [[Iraq War]]. These events, along with the [[2002 Bali bombings|2002 Bali Bombings]] and other terrorist incidents, led to the creation of a National Security Committee and further anti-terrorist legislation.<ref name="autogenerated3" /> In foreign affairs, the government advocated a policy of "Asia first, but not Asia only", emphasising traditional links to the Commonwealth and the US. Relations with Indonesia became strained over East Timor but generally improved after the Bali bombings. Australia's support of US policy during the War on Terror was followed by an [[Australia–United States Free Trade Agreement|Australia-United States Free Trade Agreement]] in 2004. Trade agreements with Singapore and Thailand were also secured and relations with China improved. Australia joined the US in refusing to ratify the [[Kyoto Protocol]] on greenhouse gas emissions, arguing that it would harm Australia's economy and would be ineffective without the participation of China and India.<ref>Goot, Murray (2013), In Bashford and MacIntye (eds) Cambridge History of Australia, Vol 2. pp. 200–02</ref> After initial cuts, the immigration intake increased steadily, with a bias towards skilled workers to meet the needs of a rapidly growing economy. Immigration also became more diverse, with the proportion of immigrants from South Asia increasing from 8 per cent in 1996–97 to 20 per cent in 2007–08. Inbound tourism also grew, helped by the Sydney Olympic games in 2000.<ref>Groot, Murray (2013). pp 191, 195, 205</ref> The economy continued its uninterrupted expansion since the early 1990s recession, with record jobs growth and the lowest unemployment rates since the 1970s. Exports, imports and foreign investment grew, and China became Australia's second largest trading partner after Japan. The coalition delivered budget surpluses in most years which, along with the proceeds of government asset sales, were partly invested in a [[Future Fund]] to reduce the national debt. Income inequality and private debt increased as the economy expanded, with the biggest increase in incomes accruing to the top 10 per cent of income earners.<ref>Goot, Murray (2013), pp 188–94</ref> By 2007, the Howard government was consistently trailing the Labor opposition in opinion polls, with key issues being rising interest rates, the unpopular Work Choices industrial relations reforms, and climate change policy. There were also leadership tensions between Howard and Costello, and opinion polls indicated a desire for a generational change in leadership. Labor won the [[2007 Australian federal election|November 2007 election]] with a swing of more than 5 per cent and Howard became only the second sitting prime minister to lose his seat in an election.<ref>Grattan, Michelle (2013). "John Winston Howard". pp 462–67</ref>
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