"Advance Australia Fair" - The Australian Federal Election 2013
AUGUST 13, 2013
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information and should not be
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“ADVANCE AUSTRALIA FAIR”
THE AUSTRALIAN FEDERAL ELECTION 2013
“It’s on,” was how Australian Prime Minister Kevin Rudd began his press
conference in announcing that the Australian Federal Election would take
place on 7 September 2013 as he seeks a renewed 3rd term for the Australian
Labour Party. With a booming export led economy, an unrivalled commercial
entry point for South East Asia and an enhanced global role what next for
On the day the election was announced opinion polls were suggesting that
support for the governing Labour Party is now virtually level with Tony
Abbott’s opposition Liberal National Coalition on a two-party-preferred basis,
the election could go either way, with a second hung parliament also a
Australia enjoys an enviable AAA credit rating, a booming resources-led
economy and has been insulated from the GFC mainly because of its
significant engagement in South East Asia and its rapidly growing role as a
business hub for the entire region. Australia also became a non-permanent
member of the United Nations Security Council in January and chairs
sanctions committees on the Taliban, Al Qaeda and Iran, starting its one-
month tenure as president of the Security Council from September. Australia
will have “pen holder” responsibility in respect of Afghanistan, meaning
Australia will draft Security Council agreements relating to the UN
involvement after American and allied troops substantially reduce their
presence in Afghanistan, and in 2014 Australia hosts the G20 in Brisbane in
resources rich Queensland enhancing its crucial Asian role in particular.
Patton Boggs, which now has a permanent presence in Australia, has
identified the following main issues upon which the election will be fought:
Synergies with President Obama’s Action Plan on Climate Change can be found in both parties’ general approach
to the issue.
Under a new Labour Government Australia will move from a fixed price for carbon (“the carbon tax”) to an
emissions trading scheme (ETS) in 2014, one year earlier than planned at a cost to the budget of $US 3.5 billion.
Labour’s carbon emission’s reduction target is aligned with U.S. and international targets of 5 percent by 2020-
based on 2000 levels – and 80 percent by 2050.
Under a Liberal-National Coalition Government “direct action” involving, for example, the planting of 20 million
trees and a 15,000-strong “green army” will be the preferred approach, as would public subsidies for climate
friendly energy producers. Tony Abbott has made a “pledge in blood” to abolish carbon pricing in favour of this
The Coalition has the same 5-percent emission’s target but has made no commitment beyond 2020, preferring to
review longer term targets as part of a “multinational approach.”
It is clear even at this early part of the election campaign that one of the main battles will be about which party has
the preferred long-term economic plan for addressing Australia’s post resources boom. In the lead up to the
election announcement Prime Minister Rudd declared that the so-called, and much maligned, “mining tax” aimed
at reducing carbon emissions was to be abandoned and instead a move to a floating carbon price and cap and
trade scheme would proceed post the September election. A number of other unpopular policies have also been
abandoned to “clear the decks” for the election. During the period of the month-long election campaign four
announcements will no doubt colour the electorates views of who they want to occupy the Prime Minister’s
residence, the “Lodge,” namely: the Reserve Banks’ two anticipated interest rate decisions, next week’s Labour
force figures, and the June Quarter gross domestic product announcement, the latter coming a mere 3 days out
Labour has committed itself to returning the Federal Budget to surplus by 2016- 17 and will seek to promote its
economic stewardship during the GFC.
The Coalition proposes to undertake a programme of spending cuts to get the budget back to surplus, including
the loss of 12,000 public service positions and reduced expenditure on environmental programs. Deferral of
proposed increases to Australia’s superannuation contributions has also become a major part of its economic
The role of Australia in terms of collaborative approaches to issues of mutual US/Australia security will continue
to be a central plank of Australia and the region’s security. In terms of Afghanistan, both parties are committed to
the withdrawal of troops by the end of 2013.
Defence co-operation with the United States will be increased, for example, increasing the number of U.S.
Marines in Northern Australian ports by 2,500 in the next 3 years, and there will be a greater emphasis
engagement with Indian Ocean fronting nations.
The Coalition will “aspire” to restore 3-percent annual growth to defence, and Indian Ocean security engagements
will be similarly pursued
Both parties have confirmed that they will continue with the policies of mandatory detention and offshore
processing of asylum seekers, however there are significant differences of approach.
Labour will send more than 10,000 asylum seekers to nearby Papua New Guinea who would not be resettled in
Australia. Labour will also increase the refuge quota to 20,000.
The Coalition haS pledged to send 5,000 asylum seekers to the Micronesian Nation of Nauru to be housed in
tented compounds. The Coalition will also increase the refuge quota but by a lesser amount of 13,750.
Should you have any questions regarding the developments addressed in this Client Alert, please contact Simon Harrison at
firstname.lastname@example.org or +61 (7) 3211 9992, or Sonia Barber at email@example.com or +61 (7) 3211 9992.