Leslie Massey
Australia has a stable government, with a strong response to the COVID-19 crisis, a swift implementation of major policies, and a well-protected liberal democratic political system. The country has an open and transparent electoral regime, with compulsory voting, proportional voting, and preferential voting, which ensures that minor parties and independents matter. Australia's federal system of government consists of three branches: the legislative, the executive, and the judicial, with power divided between the federal government and the states. The country has maintained a stable government under its Constitution since Federation in 1901 and is currently ranked as a full democracy.
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What You'll Learn
Australia's political stability compared to the US
Australia has a stable government, with a 2023 political stability index of 0.92 points, a decline from 0.98 points in 2022. This score is based on several factors, including the likelihood of a disorderly transfer of government power, armed conflict, violent demonstrations, social unrest, international tensions, terrorism, and ethnic, religious or regional conflicts. In comparison, the world average is -0.06 points, based on data from 193 countries.
Compared to the US, Australia's politics are less polarised due to preferential (or ranked-choice) voting and compulsory voting. Preferential voting allows for a broader range of parties and candidates beyond the two-party system, including minor parties and independents. This system also incentivises centrist candidates and prevents the success of fringe strategies or extremist views. Compulsory voting ensures that virtually everyone votes, making it unnecessary to employ sensational tactics to increase voter turnout.
Additionally, Australia's elections are held on weekends, maximising voter participation. The Australian Senate is elected through proportional representation, giving greater representation to smaller parties and a broader range of political views. These factors contribute to a more stable political environment compared to the US, where creating a sense of otherness and divisiveness can be an effective electoral strategy.
Some commentators have noted that the US has declined in political stability in recent years, particularly under the Trump administration, while Australia's political system remains relatively stable and difficult to destabilise. However, it is important to acknowledge that political stability is a complex issue influenced by various factors, and there may be other considerations beyond the scope of this discussion.
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Preferential voting and compulsory voting
Australia's political stability has been attributed to its preferential voting and compulsory voting systems. Preferential voting, also known as ranked-choice voting, allows voters to rank candidates on the ballot paper in order of preference. This means that if no candidate receives an absolute majority (more than 50% of total votes) in the first count, subsequent counts can be held, with the candidate with the lowest number of votes excluded, and their votes distributed according to voters' next preferences. This process continues until a candidate reaches an absolute majority.
There are variations in the preferential voting system across Australia. For example, in federal elections, voters must mark a preference for every candidate on the ballot paper for the House of Representatives, but only for a designated number of preferences for the Senate. In the Senate, each state constitutes one multi-member electorate, with 12 senators elected from each state, with elections taking place for half the senators every three years, unless it is a double dissolution, in which all 12 senators are elected. In 2016, the Senate voting system was changed to introduce optional preferential voting, with voters able to choose between voting for a party or for individual candidates.
Compulsory voting, alongside preferential voting, is believed to contribute to political stability. It incentivises political parties to appeal to a broad range of voters, discouraging the use of strategies that target only a small, fringe group. It also makes it difficult to use coercion to prevent disadvantaged groups from voting, which can be an issue in non-compulsory voting systems.
The combination of preferential and compulsory voting in Australia results in a less polarised political landscape. It encourages the emergence of centrist, independent candidates, and prevents political parties from relying on extreme strategies to increase voter turnout.
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Australia's political risk and economic outlook
Australia has a stable liberal democratic political system under its Constitution, which is the world's tenth oldest, dating back to Federation in 1901. It is a constitutional monarchy with a parliamentary democracy in the Westminster tradition. The Economist Intelligence Unit rated Australia a "full democracy" in 2023. Australia's federal system of government consists of three branches: the legislative, executive, and judicial.
The country's political stability is enhanced by its open and transparent electoral regime, with compulsory voting and a preferential voting system. This helps to prevent political polarisation and encourages the representation of minor parties and independents, contributing to a balanced political landscape.
However, there are political risks to consider. Australia's political risk and economic outlook are influenced by various factors, including its energy policy, environmental concerns, and relationships with other countries.
Energy and Environmental Policy
Australia's dependence on coal as a major energy source undermines its transition to clean energy. While the Labor government is committed to a green energy transformation, this could change if the Coalition wins the next elections. Slow progress on emissions-reduction policies and a lack of engagement in global cooperative environment-protection issues have led to a decline in Australia's environmental policy ranking.
Economic Outlook
Australia's economic outlook is facing domestic and global pressures, resulting in projected GDP growth of 2% in 2025, down from 2.1% in 2023. High energy prices and low commodity prices, along with an aging population, have contributed to a structural budget deficit. The country's net federal debt has increased due to COVID-19 spending, and skill shortages remain a concern. However, Australia remains an attractive destination for investment and trade due to its strong economic partnerships and high levels of foreign direct investment in key sub-sectors.
Social Cohesion and Civil Rights
Australia's social cohesion is generally strong, with a content society despite high levels of inequality. The government's strong response to the COVID-19 crisis demonstrated its executive capacity, but civil and human rights concerns have been raised due to increasingly stringent anti-terrorism laws and severe lockdown measures.
In summary, Australia's political risk and economic outlook are characterised by a stable political system, a mixed economic outlook with pressures on energy and environmental policies, and a generally cohesive society with some civil rights concerns. The country's energy and environmental policies, relationships with trading partners, and social cohesion will continue to shape its future political and economic trajectory.
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Australia's environmental policy and energy sector
Australia has been ranked in the bottom three rich countries for environmental policies. This is due to its poor performance in tackling climate change, with high per capita emissions, relatively low petrol taxes, and high fossil fuel production. Australia's foreign aid spending has also been criticised for being insufficient compared to other developed countries. However, Australia has been recognised for its effective trade policies and commitment to open trading relationships.
In terms of the energy sector, Australia's energy system is currently undergoing significant changes. While the country has traditionally relied on non-renewable fossil fuels, with coal and gas accounting for around 70% of electricity generation in 2021, the share of renewable energy sources has been increasing. In 2021, renewable energy sources like wind, solar, and hydro provided about 29% of Australia's electricity generation. As of 2022, there are over 3.1 million solar power PV systems and 4.6 million small-scale renewable installations in the country.
The National Electricity Market (NEM) delivers around 80% of all electricity in Australia, interconnecting the five eastern and southern states and the ACT. Western Australia and the Northern Territory have their own electricity systems and are not connected to the NEM. Large generators, or power plants, produce electricity from energy sources such as coal, wind, solar, or hydro. High-voltage transmission lines carry the electricity over long distances, which is then converted back to low voltage for distribution to homes, offices, and factories.
To meet its net-zero targets, Australia aims to double the level of renewable generation each decade from now until 2050. This transformation is driven by economic, engineering, and environmental factors, as well as changing consumer preferences for independence and control over electricity supply and use. Wind and solar photovoltaics (PV) are now the cheapest forms of new electricity generation.
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Australia's civil rights and liberties
Australia has a stable government, with compulsory voting and a preferential voting system that encourages a diverse range of parties and independents. This system, combined with an independent body overseeing elections, helps to stabilise the country's politics and prevent extremism.
Australia is a constitutional democracy with a freely elected federal parliamentary government. The country's civil rights and liberties are protected by the Australian Human Rights Commission, which monitors and promotes human rights protections. The Commission has developed a model for a national Human Rights Act, which is currently being lobbied for by Civil Liberties Australia (CLA). This organisation is also calling for a social justice program to be implemented, addressing issues such as the treatment of Aboriginal and Torres Strait Islander people, and the use of citizenship cessation laws for dual-national children, which can result in statelessness.
The Australian Human Rights Commission Act 1986 outlines the Commission's responsibilities, which include upholding the Racial Discrimination Act 1975, the Sex Discrimination Act 1984, the Disability Discrimination Act 1992, and the Age Discrimination Act 1996. The principle of non-discrimination is a key tenet of human rights law, ensuring that all people can enjoy their rights regardless of race, sex, disability, or other factors.
In addition to these protections, Australia's Constitution guarantees five explicit individual rights. These include freedom of expression, freedom of the press, and freedom to participate in the political process. An independent and impartial judiciary also uphold civil liberties, providing a means for individuals and organisations to seek redress for human rights abuses.
Despite these protections, there have been concerns about the country's tilt towards a police state mentality and the need to strengthen safeguards for transparency in governance.
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Frequently asked questions
Yes, Australia has a stable government. It is a constitutional monarchy, governed via a parliamentary democracy in the Westminster tradition.
Australia's government is more stable than that of the US. This is due to a combination of compulsory voting, preferential voting, and the fact that elections are held on weekends, maximising voter turnout.
Australia operates as a two-party system, with a written constitution that outlines a division of power between the federal government and the states.
The head of state in Australia is the monarch, currently King Charles III, who is represented by the governor-general.
The governor-general's powers are usually exercised based on the prime minister's advice. However, they retain reserve powers that do not require another person's approval, although these are rarely used.
