Government
Type: Democratic, federal-state system recognizing British monarch as sovereign.
Constitution: Passed by the British Parliament on July 9, 1900.
Independence (federation): January 1, 1901.
Branches: Head of state is the British monarch, who is also the Australian sovereign, represented by an appointed governor general. Legislative--bicameral Parliament (76-member Senate, 150-member House of Representatives). The House of Representatives selects as head of government the Prime Minister, who then appoints his cabinet. Judicial--independent judiciary.
Administrative subdivisions: Six states and two territories.
Political parties: Liberal, the Nationals, Australian Labor, Australian Democrats, Australian Greens, and Family First. The Liberal Party and the Nationals form the governing coalition.
Suffrage: Universal and compulsory over 18.
Central government budget (revenue): FY 2007-2008 $219.4 billion; FY 2008-2009 $231.8 billion (2006 US$/$A = 1.32).
Defense: $19.9 billion or 1.81% of GDP for FY 2007-2008. (2006 US$/$A = 1.32).

AUSTRALIA GOVERNMENT
The Commonwealth government was created with a Constitution patterned partly on the U.S. Constitution, although it does not include a "bill of rights". The powers of the Commonwealth are specifically defined in the Constitution, and the residual powers remain with the states. Proposed changes to the Constitution must be approved by the Parliament and the people, via referendum, in order to take effect.

Australia is an independent nation within the Commonwealth. Queen Elizabeth II is the head of state and since 1973 has been officially styled "Queen of Australia." The Queen is represented throughout Australia by a governor general and in each state by a governor.

The federal Parliament is bicameral, consisting of a 76-member Senate and a 150-member House of Representatives. Twelve senators from each state are elected for 6-year terms, with half elected every 3 years. Each territory has two senators who are elected for 3-year terms. The members of the House of Representatives are allocated among the states and territories roughly in proportion to population. In ordinary legislation, the two chambers have coordinate powers, but all proposals for appropriating revenue or imposing taxes must be introduced in the House of Representatives. Under the prevailing Westminster parliamentary system, the leader of the political party or coalition of parties that wins a majority of the seats in the House of Representatives is named prime minister. The prime minister and the cabinet wield actual power and are responsible to the Parliament, of which they must be elected members. General elections are held at least once every 3 years; the last general election was in October 2004.

Each state is headed by a premier, who is the leader of the party with a majority or a working minority in the lower house of the state legislature (Queensland is an exception, with a unicameral parliament). Australia's two self-governing territories have political systems similar to those of the states, with unicameral assemblies. The territories are headed by Chief Ministers who are the leader of the party with a majority or a working minority in the territories' legislature. Australia's 673 local councils assist in the delivery of services such as roads maintenance, sewage and the provision of recreational facilities.

At the apex of the court system is the High Court of Australia. It has general appellate jurisdiction over all other federal and state courts and possesses the power of constitutional review.

Principal Government Officials
Governor General--Maj. Gen. (Ret.) Michael Jeffery
Prime Minister--John W. Howard
Deputy Prime Minister--Mark A.J. Vaile
Foreign Minister--Alexander Downer
Defense Minister--Brendan J. Nelson
Ambassador to the United States--Dennis Richardson
Ambassador to the United Nations--Robert Hill

Australia maintains an embassy in the United States at 1601 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-797-3000), and consulates general in New York (212-351-6500), San Francisco (415-536-1970), Honolulu (808-524-5050), Los Angeles (310-229-4800), Chicago (312-419-1480) and Atlanta (404-760-3400).

AUSTRALIA POLITICAL CONDITIONS
Three political parties dominate the center of the Australian political spectrum. The Liberal Party (LP), nominally representing urban business interests, and the Nationals, nominally representing rural interests, are the more conservative parties. The Australian Labor Party (ALP) nominally represents the trade unions and left-of-center groups. The ALP, founded by labor unions, traditionally had been moderately socialist in its policies and approaches to social issues. Today, it is a best described as a social democratic party. All political groups are tied by tradition to domestic welfare policies offering extensive social welfare programs. Over the last decade, Australia's social welfare system has increased assistance to families while imposing obligations on those receiving unemployment benefits and disability pensions. There is strong bipartisan sentiment on many international issues, including Australia's commitment to its alliance with the United States.

The Liberal /National coalition came to power in 1996, ending 13 years of ALP government and electing John Howard Prime Minister. Re-elected in October 1998, November 2001, and October 2004, the coalition now holds 87 seats (75 Liberal/12 National) in the House of Representatives, against 60 for the ALP, and 3 independents. Currently, in the Senate, the coalition holds a majority with 39 seats in the 76-seat chamber, against 28 for the ALP, 4 for the Australian Democrats, 4 for the Australian Greens, and 1 for the Family First party.

Howard's center-right coalition moved quickly to reduce federal government debt and the federal budget deficit, decrease the influence of organized labor, realign the immigration program to better attract skilled labor, and reform Australia's tax and social welfare systems. The Howard government, building on the economic reforms begun by the ALP governments of Robert Hawke and Paul Keating, also has accelerated the pace of privatization, beginning with the government-owned telecommunications corporation and introducing policies to deter illegal immigration and people-smuggling. The Howard government has continued the foreign policy of its predecessors, stressing relations with four key countries: the United States, Japan, China, and Indonesia. The Howard government strongly supports U.S. engagement in the Asia-Pacific region and has sent troops as part of the coalitions in Afghanistan and Iraq. National elections will likely take place in late 2007.