Abbott government
In office
18 September 2013 – 15 September 2015
Monarch	Elizabeth II
Governor-General	Dame Quentin Bryce Sir Peter Cosgrove
Prime Minister	Tony Abbott
Deputy	Warren Truss
Party	Liberal and National (Coalition)
Status	Majority
Origin	Abbott wins 2013 federal election
Demise	Abbott loses 2015 Liberal leadership spill
Predecessor	Rudd government (II)
Successor	Turnbull government

This article is part of a series about Tony Abbott
Member for Warringah (1994–2019) Howard government 2009 Liberal leadership spill 2010 federal election Prime Minister of Australia Ministry Election Operation Sovereign Borders Direct Action Royal Commission into Unions 2014 Budget North Asian trade agreements February 2015 and September 2015 Liberal Party spills Battlelines
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The Abbott government was the federal executive government of Australia led by the 28th Prime Minister Tony Abbott. The government was made up of members of the Liberal–National Coalition. The Leader of The Nationals, Warren Truss, served as Deputy Prime Minister. Following the 2013 Australian federal election held on 7 September, the Coalition defeated the second Rudd government, ending six years of Labor government. The Abbott government was sworn into office on 18 September 2013.^[1] Less than two years later on 14 September 2015, Malcolm Turnbull defeated Abbott in a leadership ballot, 54 votes to 44 and the Turnbull government became the executive government of Australia.

In economic policy, the Abbott government aimed to rein in a budget deficit that reached A$48.5 billion by June 2014.^[2] It concluded free trade agreements with China, Japan and South Korea. It removed the Rudd-Gillard era Resource Super Profits Tax and carbon pricing.^[3][4] It established the National Commission of Audit to advise on restoring the Budget to surplus; instituted the Royal Commission into trade union governance and corruption; founded the Medical Research Future Fund; and produced White Papers on Developing Northern Australia and the Agricultural Competitiveness. Treasurer Joe Hockey delivered two Budgets, the first focused on expenditure reduction measures, but faced a hostile reception in the Senate and media. Partial deregulation of universities, and a $7 contribution to doctor visits were proposed, but blocked by the Senate. The second Budget emphasised stimulus for the small business sector.

Abbott campaigned in opposition and in office to halt the people smuggling trade, and unauthorised maritime arrivals ceased during his term of office under Operation Sovereign Borders.^[5] In foreign policy, Australia continued its military engagement in the Middle-East, amid the worsening Syrian conflict. In 2015, The Abbott government agreed to resettle an additional 12,000 refugees from the region.^[6] Abbott and Foreign Minister Julie Bishop challenged Russia at the United Nations over the shooting down of Malaysian Flight MH17 in Ukraine. The government launched the New Colombo Plan to encourage educational exchange with the Indo-Pacific region.

Domestically, Abbott campaigned for recognition of Indigenous Australians in the Australian Constitution, flagging a referendum for 2017, and promised a plebiscite on the issue of same-sex marriage. Investments in air and road infrastructure were prioritised. Many of Abbott's proposed policies were opposed by the Australian Senate which was, during the Abbott government, controlled by opposition parties. The 2013 election saw the emergence of the right-wing Palmer United Party, which lead to fears that conservative voters would defect from supporting Abbott's Liberal coalition, but Palmer United fractured soon after. The Liberal Party faced Cabinet leaks and early leadership instability, after a poorly received first Budget and amid media criticism.^[7] Abbott became the shortest-serving Australian Prime Minister since William McMahon, when his government was succeeded by the Turnbull government. Turnbull cited Newspoll results and "economic leadership" as reasons for mounting his challenge against Abbott.^[8]

Background

The Liberal–National coalition, led by Abbott, won the 2013 Australian federal election, returning their Coalition to power after six years in opposition. Abbott, a Rhodes Scholar, and former trainee Catholic priest, journalist and political advisor, had entered Parliament in 1994 as the Member for Warringah and served as a senior minister in the Howard government, which lost office at the 2007 election to the Australian Labor Party, led by Kevin Rudd. Abbott served as Shadow Minister for Indigenous Affairs under Liberal leaders Brendan Nelson and Malcolm Turnbull and then became Leader of the Opposition following a 2009 leadership spill in which he defeated the incumbent leader, Turnbull, by one vote.

Rudd did not complete his first term in office, having been replaced by Julia Gillard following an internal Labor party leadership vote in June 2010. Abbott led the Coalition to the 2010 federal election, which saw the Gillard government narrowly retain office by forming a minority government with the support of four crossbench MPs after the election produced a hung parliament.^[9] Leadership instability in the Labor Party continued, and Gillard was replaced by Rudd following a Labor ballot conducted shortly before the 2013 election.

As Opposition Leader, Abbott opposed the Rudd–Gillard government's introduction of a mining profits tax, and emissions trading scheme and carbon tax, and criticised the handling of asylum seeker policy. He offered support to the Gillard government's National Disability Insurance Scheme, and matched the government on its first four years funding for the Gonski restructuring of education funding. He took a proposal for an expanded paid parental leave scheme, part funded by a levy on big business, to the 2010 and 2013 elections. If elected, he promised to instigate a referendum to give recognition to Indigenous Australians in the Australian Constitution, and to prioritise indigenous affairs by placing it within the department of prime minister and cabinet, saying: "There will be, in effect, a prime minister for Aboriginal affairs".^[10][11] In his 2013 election campaign, Abbott told the media that the Coalition wanted to "build a stronger economy so that everyone can get ahead. We'll scrap the carbon tax, end the waste, stop the boats and build the infrastructure and the roads of the 21st century."^[12]

2013 election

The Liberal Party under Abbott, together with the National Party, led by Warren Truss, achieved a 3.65-point two-party-preferred swing at the 2013 election, winning 90 of the Australian House of Representatives seats compared with the Labor Party's 55.^[13] The Greens retained their one seat in the chamber, with Bob Katter of Katter's Australian Party also returned. Two independents won seats in the House, and the seat of Fairfax fell from the Nationals to Clive Palmer, leader of the newly formed Palmer United Party.^[13]

The emergence of the fledgling Palmer United Party was a notable feature of the election. The new party secured a House of Representatives seat and three senators (although two senators subsequently split from the party).^[14] The Greens, which had been in alliance with Labor for the preceding three years, lost one senator and a third of their vote under new leader Christine Milne. The party had campaigned heavily against Abbott and promised to block his key election commitment to abolish the carbon tax it had jointly introduced with the Gillard government.^[15][16][17]

The Australian Electoral Commission successfully petitioned the High Court for the West Australian Senate election to be declared void, on account of 1,375 ballot papers lost during a recount after the election. The initial count had declared the Liberals and Labor winners of four of six seats, with remaining two going to Zhenya Wang of the Palmer United Party, and Labor's Senator Louise Pratt. The faulty recount narrowly gave the final two seats to Wayne Dropulich of the Australian Sports Party, and to the Greens' Senator Scott Ludlam. In February 2014, the High Court ordered a new Senate election for Western Australia.^[18][19]

Appointments

Governor-General Quentin Bryce officially commissioned the Abbott ministry on 18 September 2013. Fifteen of Abbott's ministers had served in the Howard government. The Leader of the National Party, Warren Truss, became Deputy Prime Minister, Joe Hockey assumed the post of Treasurer and Deputy Liberal Leader Julie Bishop became the first woman appointed Foreign Minister of Australia. Senator Mathias Cormann was promoted to the position of Minister for Finance.

Of the three female members of the Abbott Shadow Cabinet, Julie Bishop retained her position in Foreign Affairs following the 2013 election, while Bronwyn Bishop became Speaker of the Australian House of Representatives, and the Shadow Industry Minister Sophie Mirabella lost her seat at the election. Bronwyn Bishop resigned as Speaker in 2015. Julie Bishop remained the only woman in Cabinet until Sussan Ley was appointed to Cabinet to replace Peter Dutton as Health and Sport Minister in 2014 when Dutton was made Immigration Minister in Abbott's Cabinet revision. Five other women were appointed to posts in the outer ministry, and one of the twelve parliamentary secretaries is female.^[20][21] Philip Ruddock, the longest serving member in the Parliament, was appointed Chief Government Whip.^[22] Eric Abetz retained the portfolio of Employment, George Brandis was appointed Attorney-General, Christopher Pyne as Education Minister, and Abbott's former leadership rival Malcolm Turnbull took Communications.^[22]

In his speech following his swearing-in ceremony, Abbott said his government would "strive to govern for all Australians":^[23] "We won't forget those who are often marginalised; people with disabilities, Indigenous people and women struggling to combine career and family. We will do our best not to leave anyone behind. We hope to be judged by what we have done rather than by what we have said we will do."

The Abbott ministry was not announced for an unusually long period and the Agence France Presse reported that Abbott had set out to stamp a "markedly different style on government" standing "in stark contrast to the 'chaos' he liked to accuse his Labor predecessors of fomenting as almost hourly soundbites, lengthy press conferences and briefings were cranked out in an effort to control the 24-hour news cycle".^[24]

Responsibility for women's policies and programs was moved from the Department of Families, Housing, Community Services and Indigenous Affairs into the Prime Minister's Office, with Michaelia Cash appointed Minister Assisting the Prime Minister for Women.^[25] The ministry also divided responsibilities for science between the portfolios of Education, under Christopher Pyne, and Industry, under Ian McFarlane.^[26][27] The December 2014 Cabinet reshuffle saw Ian McFarlane become the Minister for Industry and Science.^[28]

Term of government

Foreign affairs

Julie Bishop became the first woman to represent Australia as Minister for Foreign Affairs. In Opposition, Abbott and Bishop pledged that a Coalition government would shift Australia's foreign policy focus to be "less Geneva, more Jakarta".^[29] Abbott chose the Indonesian capital as his first overseas destination, and travelled to Jakarta on 30 September 2013, to meet with President Susilo Bambang Yudhoyono on 30 September 2013.^[30]

In October, Abbott returned to Indonesia to attend his first APEC leaders' summit, to discuss trade and economic relations and meet with Chinese President Xi Jinping, US Secretary of State John Kerry and other world leaders. Following the summit, Abbott travelled to Bali, where he laid a wreath at the memorial of the 2002 Bali bombing. He also announced a commitment to extend compensation to Australian victims of terrorist attacks, allowing payments of up to A$75,000 to those who suffered in attacks on New York, London, Egypt, Mumbai, Jakarta, Bali and Nairobi since 2001.^[31] In Brunei, Abbott also attended his first East Asia Summit with world leaders, including India's Prime Minister Manmohan Singh.^[32]

In 2013, prior to the election of the Abbott government, US intelligence leaker Edward Snowden had been granted asylum by Russia after handing over large amounts of confidential information from US government databases to world media.^[33] Australian–Indonesian diplomatic relations began to suffer in the early months of the government, as The Guardian and ABC News began to publish material, which had been made public due to Snowden's leaking, suggesting that Australian spy agencies during the term of the previous government had spied on the Indonesian President and his wife.^[34] The alleged spying had taken place soon after the July 2009 bombing of Jakarta's Marriott and Ritz-Carlton hotels.^[35] Indonesia recalled its ambassador over the affair.^[36]

Shooting down of MH17

During the 2014 Russian military intervention in Ukraine, Malaysia Airlines Flight 17 was shot down in a missile attack. Julie Bishop and Australia's UN Ambassador Gary Quinlan led negotiations at the United Nations Security Council to adopt a unanimous resolution, demanding that the armed groups in control of the crash site refrain from interfering with it and allow for the repatriation of victims and an international investigation into the attack.^[37] Bishop was honoured by The Netherlands for her role in securing the resolution and investigation.^[38]

The downing of the flight had resulted in 298 deaths, including 38 Australian citizens and residents. In the lead up to the 2014 G20 meeting in Brisbane, Tony Abbott focused world attention on Russia's role in the shooting down of the civilian plane. In a meeting with Russian President Vladimir Putin at the APEC meeting in Beijing, Abbott reportedly told the president that Australia had information that the missile that destroyed the plane had Russian origin and that Russia should consider apologising and offering appropriate restitution to the victims of the shooting. Russia continued to deny involvement.^[39]

Trade

Andrew Robb served as Minister for Trade and Investment. In April 2014, Abbott led a trade delegation to Japan, South Korea and China. The three economies accounted for more than half of all of Australia's two-way trade.^[40] By the close of his tenure, Abbott's government had struck free trade agreements with the three nations.

The Abbott government also established the Germany-Australia Advisory Group, to advise on improving trade relations, and pursued trade agreements with Indonesia and India.^[41][42]

Free trade agreements

Japan–Australia Economic Partnership Agreement

On the Japanese leg of the 2014 trade mission, Abbott agreed the key elements of a free trade agreement with the government of Shinzo Abe.^[43] A number of concessions were secured for Australian agricultural exporters, while Australian tariffs on electronics, whitegoods and cars were to be lowered. Negotiations for the agreement began under the Howard government in 2007. Abbott said, "This is the first time that Japan has negotiated a comprehensive economic partnership agreement or free trade agreement with a major economy, particularly a major economy with a strong agricultural sector."^[44] Abe travelled to Australia in July to sign the Japan–Australia Economic Partnership Agreement, and address the Australian Parliament.^[45]

Australia Korea Free Trade Agreement

On the South Korean leg of the mission, Abbott signed the Australia Korea Free Trade Agreement (KAFTA) with the government of Park Geun-hye in Seoul. The agreement reduced tariffs on primary products and reset the foreign investment review threshold to more than $1 billion.^[46]

China–Australia Free Trade Agreement

The Abbott trade mission continued on to China, where he met with Premier Li Keqiang and President Xi Jinping. In an address to the Boao Forum, Abbott said "Team Australia" is in China to "help build the Asian century". He was accompanied by Foreign Minister Bishop, Trade Minister Robb, five of Australia's state premiers, and 30 of the country's senior business executives. Abbott also discussed the search for missing Malaysia Airlines flight MH370, being led by Australia.^[47] Abbott announced military co-operation between the China and Australia would be developed to include high-level meetings, staff exchanges and joint exercises. He also announced that President Xi would address the Australian Parliament in 2015.^[48]

The China–Australia Free Trade Agreement (ChAFTA) was signed in Canberra on 17 June 2015, by Andrew Robb, and the Chinese Commerce Minister, Gao Hucheng.^[49] Abbott hailed the agreement, saying that, along with the Korean and Japan agreements, it would underpin Australia's prosperity in coming years.^[50] Labor campaigned against the agreement during the Canning by-election, but subsequently agreed to support the Turnbull government in ratifying the FTA.^[50][51]

Defence

The Abbott government period saw the continued wind down of Australia's involvement in the Afghanistan conflict and moves to enhance co-operation with China, Japan and the United States in regional defence operations, but also saw the deterioration of the Syrian Civil War and rise of the threat of Islamic State, along with an ongoing Islamist terrorism threat to Australia and its allies. Abbott committed to increasing Defence spending to two per cent of GDP within a decade.^[52] David Johnston served as Minister for Defence until December 2014, when he was replaced by Kevin Andrews.^[53][54]

At the end of October 2013, Abbott travelled to Afghanistan with opposition leader Bill Shorten for a special ceremony at the Australian base in Tarin Kowt in Uruzgan, saying that "Australia's longest war is ending. Not with victory, not with defeat, but with, we hope, an Afghanistan that is better for our presence here." Afghan forces were scheduled to take over running of the camp in mid-December.^[55][56]

Abbott met with US President Barack Obama in June 2014, in Washington, and approved a legal agreement for the deployment of around 1,300 US Marines to the Northern Territory, first proposed under the Gillard government.^[57] Abbott also moved to strengthen economic and defence ties with Japan, signing the Japan–Australia Economic Partnership Agreement and inviting Shinzō Abe to address Parliament and announcing a transfer of defence technology and equipment would be included in it.^[58]

In 2014, the government announced the investment of $12 billion in F-35 joint strike fighters.^[59]

Submarine construction

Fairfax Political Editor Mark Kenny attributed the anti-Liberal swing in the 2014 Fisher state by-election in South Australia to Federal factors associated with the Defence Portfolio, writing: "People on both sides of the aisle in Adelaide say the dominant factor was the Abbott government's perceived intention to buy submarines 'off the shelf' from Japan rather than build the high-tech vessels in South Australia as had been promised."^[60]

Days prior to the by-election, the Defence Minister David Johnston had denounced the capabilities of the Australian Submarine Corporation which wanted to construct Australia's new submarine fleet at Adelaide, saying the company was at least $350 million over budget in building three air warfare destroyer ships: "You wonder why I'm worried about ASC and what they're delivering to the Australian taxpayer, you wonder why I wouldn't trust them to build a canoe?" the Minister told Parliament.^[61] Labor campaigned at the by-election on the issue, and linked Abbott to the state vote.^[62] Labor won the traditionally Liberal seat by just five votes from a 7.27 percent two-party swing to go from minority to majority government.^[63]

MH370 search

On 8 March 2014 Malaysian Airlines Flight MH370 disappeared and presumably crashed somewhere in the Indian Ocean, within Australia's search and rescue zone. Consequently, the Chinese and Australian militaries co-operated in the search for the missing plane, and in April 2014 the People's Liberation Army asked to operate under Australian command in the largest international exercises in which it had ever participated. The Fairfax press reported: "It is believed to be the first time the PLA would operate under Western command in a military exercise".^[64]

Islamic State deployment

Following the Arab Spring uprisings, and withdrawal of the bulk of US troops from Iraq, the threat of Islamic State/ISIL/ISIS emerged, amid the deteriorating Syrian Civil War. The extremist Sunni Islamist group was battling government forces in Syria and Iraq, with the objective of establishing of an Islamic caliphate across the region.^[65] Domestic terrorist attacks by ISIS supporters occurred in Australia in 2014, with knife and gun attacks in Melbourne and Sydney against police and civilians. In October 2014, the Federal cabinet approved the decision to launch air strikes in Iraq in response to concerns over ISIL militant groups.^[66][67] Abbott announced that the Australian mission was to "disrupt and degrade" Islamic State "at home and abroad".^[68]

According to Defence analyst and Abbott confidant Catherine McGregor, Abbott was frustrated at the lack of a serious effort to destroy ISIS and wanted to approach the British and the French to join him in lobbying the Obama Administration to escalate its campaign against the Islamic State, and to deploy Australian Special Forces to find and kill ISIS leaders.^[69] In September 2015, the Abbott government expanded Australia's military mission, by joining US-led airstrikes against IS targets in Syria, and announced that 12,000 additional refugees from the region would be accepted.^[70] Shortly after losing office, Abbott gave this appraisal of the battle against Islamic State:

The rise of Daesh has turned it into a fight between bad and worse: the Assad regime whose brutality is the Islamic State death cult's chief local recruiter; and a caliphate seeking to export its apocalyptic version of Islam right around the world. Given the sheer scale of the horror unfolding in Syria, Iraq and everywhere Daesh gains a foothold – the beheadings, the crucifixions, the mass executions, the hurling off high buildings, the sexual slavery – and its perverse allure across the globe, it's striking how little has been done to address this problem at its source. The United States and its allies, including Britain and Australia, have launched airstrikes against this would-be terrorist empire. We've helped to contain its advance in Iraq but we haven't defeated it because it can't be defeated without more effective local forces on the ground.

— Tony Abbott, London, 28 October 2015.^[71]

Terrorism

The government was concerned as early as August 2014 that the Indonesian militant Islamist terror group Jemaah Islamiah has aligned itself to ISIL (ISIS), and formed a potential threat.^[72] On 23 September, the government raised Australia's terror alert level from medium to high.^[73] In September 2014, an Islamic State supporter was shot dead after stabbing two policemen in Melbourne, and in December, an Islamic State supporter was shot dead after taking hostages and holding up a café in Martin Place, Sydney, in an attack in which two hostages died.^[74][75] A month later, Abbott condemned the Charlie Hebdo terror attacks in France as an "unspeakable atrocity".^[76]

When 60 people were killed in attacks in France, Tunisia and Kuwait on one day on 27 June, Abbott said: "This illustrates yet again that as far as the Daesh death cult is concerned, it's coming after us."^[77] In July, Communications Minister Malcolm Turnbull told the Sydney Institute that ISIL is not "Hitler's Germany, Tojo's Japan or Stalin's Russia" and that government should not amplify its significance.^[78][79]

At the opening of a regional summit against terrorism in Sydney in June 2015, Abbott praised the leadership against Islamist terrorism shown by Muslim statesmen such as Malaysia's Prime Minister Najib – who had described ISIS as "against God, against Islam and against our common humanity" – and of Egypt's president el-Sissi – who told Egyptian imams that Islam needed a "religious revolution".^[80] After losing office, Abbott said on Paul Murray Live on 8 December 2015: "We've got to work closely with live-and-let-live Muslims because there needs to be, as President (Abdel Fattah) Al-Sisi of Egypt has said, a religious revolution inside Islam... All of those things that Islam has never had – a Reformation, an Enlightenment, a well-developed concept of the separation of church and state – that needs to happen, but we can't do it; Muslims have got to do this for themselves."^[81]

Citizenship

In 2015, the cabinet debated giving the immigration minister new powers to strip dual nationals of their citizenship if they are supporters of terrorist organisations.^[82]

Indigenous affairs

Abbott, a former Indigenous Affairs Minister, reformed the portfolio and brought it within the Department of the Prime Minister and Cabinet, saying: "There will be, in effect, a prime minister for Aboriginal affairs".^[10] Northern Territory Senator Nigel Scullion was appointed the Minister for Indigenous Affairs in the Abbott Ministry.^[83] Scullion also served as Leader of the Nationals in the Senate.^[84][85]

In 2013, Andrew Forrest was chosen to lead a review into Indigenous employment and training programs, which was to report to the Australian government.^[86] The review was delivered on 1 August 2014, with 27 recommendations.^[87] This was the genesis of the Healthy Welfare Card initiative.^[88]

In his February 2014 "Closing the Gap" report to Parliament, Abbott said that Australia was failing to meet the "more important and the more meaningful targets" of reducing Indigenous disadvantage, and proposed to add a new target to close the gap between Indigenous and non-Indigenous school attendance within five years.^[89]

Constitutional recognition

Speaking at the Welcome to Country ceremony to mark the opening of the 44th Parliament in 2013, Abbott committed to pursuing recognition of Indigenous Australians in the Australian Constitution, and noted that the 44th parliament would have two Indigenous members.^[90] Liberal MP Ken Wyatt chaired an all-party Parliamentary Committee examining the issue, and released a report in June 2015 ahead of a bi-partisan summit.^[91] In NAIDOC Week 2015, Abbott and Opposition Leader Bill Shorten jointly hosted a summit with around 40 indigenous leaders at Kirribilli House to discuss the process for achieving Constitutional recognition. Abbott said he hoped the wording for a referendum could be concluded in 2016, for a referendum vote in 2017.^[92]

Indigenous Advisory Council

Abbott announced the establishment of the Indigenous Advisory Council in November 2013.^[93] The government-appointed council was to meet three times a year with the Prime Minister and senior ministers to advise the government on policy implementation. Aimed at sparking "new engagement" with Indigenous Australians, the 12-member council was headed by Warren Mundine.^[94][95][96]

Remote community visits

In Opposition, Abbott promised to spend a week a year in remote indigenous communities. In September 2014, Abbott and a number of Cabinet Ministers and Departmental Heads set up camp in an Aboriginal Community in Arnhem Land, near Nhulunbuy, 600 kilometres (370 mi) east of Darwin. The Prime Minister discussed land tenure, welfare and constitutional recognition.^[97] On his August 2015 week in remote indigenous communities, Abbott again discussed constitutional recognition and became the first Prime Minister to visit the grave of land rights champion Eddie Mabo.^[98]

Funding for Indigenous affairs

The government also reduced funding to the National Aboriginal and Torres Strait Islander Legal Services (ATSILS) and associated policy officer positions in state governments, but not by as much as it had committed to during the election campaign.^[99]

In December 2013 the government announced that was unlikely to provide further funding for the elected National Congress of Australia's First Peoples, which had been established in 2010 as the national representative body for Indigenous Australians.^[100][101]

In June 2014, the ABC reported that the government planned to find a further $600 million in savings from Indigenous programs, in addition to the $534 million cuts in the 2014 budget.^[102][103]

Economic policy

2013 Election

Launching his campaign for the 2013 Election, Tony Abbott outlined the economic priorities of the Coalition, promising to tackle government debt, eliminate "waste" in government expenditure, and decrease taxes which place a burden on industry and business:

We'll build a stronger economy so everyone can get ahead. We'll scrap the carbon tax so your family will be $550 a year better off. We'll get the budget back under control by ending Labor's waste... And we'll build the roads of the 21st century because I hope to be an infrastructure prime minister who puts bulldozers on the ground and cranes into our skies. The current government has turned $50 billion in the bank into debt spiralling towards $400 billion that our children and grandchildren will struggle to repay. We can't go on like this.^[104]

— Tony Abbott campaign launch speech, 2013.

Abbott promised to "cut red tape" and reduce the company tax rate. He committed to abolishing the carbon tax, to bring down power and gas prices, and to abolishing the mining tax to increase investment and employment. On industrial relations, he promised to "move the workplace relations pendulum back to the sensible centre, restore a strong cop-on-the-beat in the construction industry, and hit dodgy union officials with the same penalties as corporate crooks."^[104]

Appointments

Joe Hockey, a former Minister for Employment and Workplace Relations in the Howard government, became Treasurer of Australia, and Senator Mathias Cormann became Finance Minister in the Abbott government. Hockey had himself been a contender for the leadership of the Liberal Party in the ballot that saw Abbott win the role in 2009.^[105] Cormann had served as Shadow Assistant Treasurer and Shadow Minister for Financial Services and Superannuation.^[106] At a 27 September media conference Hockey said the government faced a challenge to sustain growth as the mining investment boom deflates, and indicated that the government was considering ways to stimulate infrastructure spending. ^[107] Within the first year of their economic stewardship there were 790,000 people unemployed, with an unemployment rate of 6.4% – a 12-year high and an increase of 0.7 points from the time the government came to office.^[108] Youth unemployment rose to a 17-year high. Hockey, eleven months after coming to office, blamed the steep rise in unemployment during his stewardship on the former government.^[108]

The 2014 federal budget was released on 13 May. In 2015, the Department of Treasury released an intergenerational report, assessing the long-term sustainability of government policies based on demographic projections of Australia's population.^{[109][110][111][112]} In April, Peter Costello published an opinion piece in The Daily Telegraph describing proposed tax changes as a "morbid joke".^{[113][114][115]}

National Commission of Audit

The National Commission of Audit was announced by Treasurer Hockey, and the Minister for Finance, Senator Mathias Cormann, on 22 October 2013. It was established as an independent body to "review and report on the performance, functions and roles of the Commonwealth government" and to advise on eliminating wasteful spending and government inefficiency and make recommendations to achieve savings sufficient to deliver a surplus of 1 per cent of GDP prior to 2023–24.^[116] The government appointed Tony Shepherd AO to chair the commission. The other commissioners were: Dr Peter Boxall, Tony Cole, Robert Fisher and Amanda Vanstone.^[117]

Taxation

In the 2013 Election campaign, Tony Abbott promised a "comprehensive tax white paper" to look at tax reform.^[118] In June 2014, Abbott launched the Reform of the Federation white paper, with an eye to clarifying "roles and responsibilities for states and territories so that they are as far as possible, sovereign in their own sphere".^[119] In March 2015, Joe Hockey launched the Abbot government's Tax White Paper titled "Re:think".^[120] In 2015 Abbott made calls for increasing the GST to 15%.^[121][122]

Privatisation and efficiency

The Abbott government sought to cut spending and sell assets to rein in a budget deficit that reached A$48.5 billion by June 2014.^[2] The Australian Competition & Consumer Commission chairman recommended the selling of assets to increase productivity.^[123] The National Commission of Audit report released in May 2014 recommended sale of the postal service, along with the Royal Australian Mint and other state assets.^[124] The government raised $5.68 billion selling shares of Medibank Private, Australia's biggest health insurer (the sale was Australia's second-largest initial public offering).^[2]

The 2014 budget announced scoping studies for the privatisation of the Mint, Australian Hearing, the Australian Securities & Investments Commission (ASIC) share registry and Defence Housing Australia, with its $10 billion real estate portfolio.^[125] In the 2015 budget, the government opted to sell the ASIC share registry, but not the Mint or Defence Housing Australia.^[125]

Industrial Relations

In February 2014, Abbott announced the Royal Commission into trade union governance and corruption to inquire into financial irregularities associated with the affairs of trade unions.^[126] The Australian Workers Union, Construction, Forestry, Mining and Energy Union, Electrical Trades Union, Health Services Union and the Transport Workers Union were named in the terms of reference.^[127] The Royal Commission inquired into the activities relating to slush funds and other similar funds and entities established by, or related to, the affairs of these organisations. The Commissioner handed down his report in December 2015, finding "widespread and deep-seated" misconduct by union officials in Australia, and referring than 40 people and organisations to authorities, including police, Directors of Public Prosecutions, the Australian Securities and Investments Commission and the Fair Work Commission. The Final Report made a recommendation for the establishment of an independent body to investigate union records and finances was made, and was received by the Turnbull government^[128]

Northern Australia White Paper

The Abbott government sought to attract investment in northern Australia. In June 2015, it released the first ever White Paper on Developing Northern Australia. The Paper contained policy proposals for the development of the north as an "economic powerhous" over the next two decades, and examined new roads, studies of dam sites, changes to land-use laws as part of a development blueprint.^[129] Elements of the push for northern development included boosting links with the Asia-Pacific economies; a $600 million roads package; money to upgrade airstrips and explore rail freight options; a $100 million beef roads fund and a $5 billion concessional loans facility; a $200 million water infrastructure fund and a plan to study river systems for dams viability; support for native title bodies and new surveys to start simplifying land arrangements for economic investment; and a $75 million Cooperative Research Centre.^[129]

Agricultural Competitiveness White Paper

The Agricultural Competitiveness White Paper, released on 4 July 2015, outlined a $4 billion investment in Australian farmers and the competitiveness and profitability of the agriculture sector:^[130] The Paper announced tax changes to assist farmers and encourage investment in water infrastructure and fencing, to mitigate droughts. It also includes money for roads and dam development, to assist in production and transport to markets; and five new agricultural trade counsellors help open up overseas markets. The Paper contained an $11.4 million boost to the Australian Competition & Consumer Commission (ACCC), and the engagement of a new Agriculture Commissioner at the ACCC, to encourage fair-trading and strengthen competition in supply chains.^[131] The Paper added $300 million to the National Water Infrastructure Fund, established by the Northern Australia White Paper.^[131]

2014 Budget

In May 2014, Joe Hockey delivered his first Federal Budget. Hockey told Parliament: "On the back of five budget deficits in a row we have inherited a further $123 billion of deficits and debt rising to $667 billion. This challenge is not of our making, but we, the women and men behind me, accept responsibility to fix it."^[132] Hockey outlined a number of proposed expenditure reductions, the abolition of the carbon and mining taxes, a Temporary Budget Repair Levy on high income earners, structural reforms to welfare and university education expenditure, the reintroduction of the fuel excise levy, and the establishment of a $20 billion Medical Research Future Fund, funded by the introduction of a $7 Medicare co-contribution. Hockey predicted, that if the measures were implemented, the budget deficit would fall from $49.9 billion to $29.8 billion over the next year.^[132]

On Budget night, economist Chris Richardson told the ABC 7.30 programme that the Budget was "a solid start towards the planned surplus while it promises some political tussles ahead."^[133] Prior to the 2013 election, Tony Abbott told SBS Television that there would be: "No cuts to education, no cuts to health, no change to pensions, no change to the GST and no cuts to the ABC or SBS."^[134] Fairfax Media reported in May that a number of Budget measures broke pre-election commitments and promises made by the Liberals in opposition.^[135] On 19 May, News Limited reported that "According to Newspoll, nearly half of voters said the measures will be lousy for the economy, and more than 60 per cent told a separate Nielsen survey the Budget was unfair."^{[136][137][138]}

A number of savings and revenue measures in the budget were opposed by Labor, the Greens and cross benches in the Senate.^[139] In his Budget in reply speech, Opposition Leader Bill Shorten said that Labor would oppose around $13 billion worth of cuts and tax hikes, including the changes to university funding.^[140] Initially Labor joined the Greens in opposing the reintroduction of a fuel excise levy, delaying passage of the measure until June 2015.^[141] Labor and the Greens opposed the Coalition's promised abolition of carbon pricing, and the introduction of "direct action" carbon-reduction policies, but the Government secured cross bench support for the repeal of the tax in July 2014.^[142] Labor and the Greens opposed abolition of the Rudd-Gillard mining tax, but it was repealed with the support of the Palmer United Party in September.^[143] The Government was unable to secure passage of its expanded Paid Parental Leave Scheme, or medicare co-contribution and the measures were scrapped. Education Minister Christopher Pyne continued to negotiate for passage of university funding reforms, but the measures are not supported by the Opposition and minor parties.

This budget has been described as "the beginning of the end" for the Abbott government.^[144]

2015 Budget

In his 2015 Budget Speech, Hockey said: "On the economic front, iron ore prices have fallen dramatically and the recovery in the global economy has been weaker than expected. But I say to you, the economic plan laid down by this government more than a year ago, is in place and it is helping us to deal with these challenges." Hockey proposed significant new small business tax concessions, and said the government would increase funding for development of Australia's north, drought assistance, jobseeker assistance, national security and medical research. The GST was to be revised to include digital purchases^[145]

The ABC reported that Hockey's second budget would see a $35 billion deficit for 2015–16, with a fall to $7 billion by 2018–19. The ABC noted that Hockey had pledged $5.5 billion for small businesses and that small business would receive a 100% tax write off for assets costing less than $20,000. A crackdown on welfare fraud would bring in $1.7 billion over forward estimates, and the fight against ISIS would receive better funding.^[146]

Financial services policyedit

The Abbott government refused calls for a royal commission into financial planner misconduct at the Commonwealth Bank (one of the largest financial service providers in Australia) after a senate committee review into the matter found gross exploitation of bank customers.^[147] The government, which favours deregulation, intends to remove customer protections in the sector; allow advisers to earn sales commission and other so-called "conflicted remuneration" from providing general financial advice; and remove the requirement for financial advisers to tell customers how much they are receiving in commissions every year and give them the chance to opt out of the arrangements every second year.^[148] This was in addition to removing the laws that require financial advisers to act in the best interest of their clients, and the requirement that they provide clients with a statement of the fees they'll be charged each year.^[149][150]

Social policyedit

Adoptionedit

In December 2013, Abbott launched a taskforce to help make it easier for Australians to permanently adopt children. He made the announcement flanked by NSW Premier Barry O'Farrell and actors Hugh Jackman and Deborra-Lee Furness, who supported the process.^[151]

Parental leave schemeedit

At the 2013 election, Abbott proposed a plan for $5.5 billion paid parental leave scheme to provide parents with 26 weeks' paid leave, at full replacement wage up to an annual salary of $150,000 (or a maximum of $75,000) – or the minimum wage if greater. The wage replacement strategy was designed to be an economic driver and boost female workforce participation rates and was intended to replace the Gillard government's $1.8 billion scheme, introduced in January 2011.^[152]

Same sex marriageedit

In opposition, Abbott's Coalition had voted against a same-sex marriage bill put to the Parliament, but in office Abbott indicated that, while he personally opposed redefinition of marriage, if a bill were to come before the new parliament, the Coalition party room would discuss its stance on the issue.^[153] In Government, Abbott reaffirmed that he did not support changing the law to recognise same-sex marriages. Attorney General George Brandis challenged the ACT Legislative Assembly's unilateral recognition of same-sex marriage as being inconsistent with the Federal Marriage Act and therefore unconstitutional, a view which was upheld by the High Court on 12 December 2013.^[154][155]

Abbott permitted Coalition members to advocate for change if they felt strongly on the issue, and indicated that if a bill were to come before the new parliament, the Coalition party room would discuss its stance on the issue.^[153] Opinion polls suggested growing support for change, and on 11 August 2015, Abbott called a Coalition Party room vote and MPs voted against allowing a free vote on the issue 66 to 33. Abbott was criticised by some pro-gay marriage Liberal MPs for holding the vote in the Coalition party room, rather than the Liberal party room.^[156] To settle the issue, Abbott proposed a plebiscite following the next election.^[157] Zdroj:https://en.wikipedia.org?pojem=Abbott_government
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