The Keating government was the federal executive government of Australia led by Prime Minister Paul Keating of the Australian Labor Party from 1991 to 1996. The government followed on from the Hawke government after Paul Keating replaced Bob Hawke as Labor leader in an internal party leadership challenge in 1991. Together, these two governments are often collectively described as the Hawke-Keating government. The Keating government was defeated in the 1996 federal election and was succeeded by the John Howard's Coalition government.
Background
Keating entered Parliament in 1969, aged just 25, when he won the seat of Blaxland for the Australian Labor Party. He went on to briefly serve as Minister for Northern Australia during the final days of the Whitlam government in 1975. Keating then served an extended period in the Shadow Ministry through the period of the Fraser government, culminating in his appointment as Shadow Treasurer in January 1983. Labor, led by Bob Hawke went on to defeat Fraser at the subsequent 1983 federal election and Keating began a long period of service as the nation's Treasurer.
Keating had no tertiary qualifications and just previously three weeks experience as a minister. Despite this, Keating oversaw a number of important transitions in the Australian economy, including the floating of the Australian dollar and program of deregulation of the Australian economy: including privatisation of assets and reductions in tariffs. He formed a powerful partnership with Hawke to deliver numerous reforms; subsequently, Hawke initially agreed to stand down after the 1990 election in Keating's favour, but later reneged on this proposal, causing tension between the two. On 3 June 1991, Keating challenged Hawke for the leadership, lost the ballot and went to the backbench. Six months later he again challenged Hawke, this time winning the leadership of the Labor Party and becoming the 24th Prime Minister of Australia.
Terms in office
Following his victory in the Australian Labor Party leadership spill of December 1991, Keating went on to lead the Labor Party to the 1993 federal election. Labor was returned with an increased majority in the Australian House of Representatives, with 80 seats to the Liberal Party's 49 and the National Party's 16 seats, with two independents.
Three years later, Keating again led the party to the 1996 federal election, in which it was soundly defeated by the John Howard-led Liberal-National Coalition: the Liberals won 75 seats, and the National Party a further 19 to Labor's 49. Keating then resigned from Parliament on 23 April.
Keating's personal style
Keating was a combative Parliamentarian. Author and journalist Peter Hartcher described him as "famed for his flair with an insult". In his earlier career as Treasurer, Keating once said of Opposition Leader John Howard, "From this day onwards Mr Howard will wear his leadership like a crown of thorns and in the Parliament I will do everything I can to crucify him." Other colourful invective he employed in the Parliament to describe political opponents included "brain-damaged", "mangy maggot" and "scumbags". In 1992, Keating refused to allow his Treasurer John Dawkins to appear before a senate estimates committee and described the Upper House of the Parliament as consisting of "unrepresentative swill". During John Hewson's tenure as Opposition Leader, he once said that being challenged by Hewson was like "being flogged by a wet lettuce".
Economy
After succeeding from Hawke as Labor leader and prime minister, Keating reshuffled the Cabinet. Dawkins replaced Ralph Willis as Treasurer. In 1991 Australia was in the midst of a prolonged economic recession, with eight-quarters of declining economic growth. In response to these economic conditions, Keating announced the "One Nation" economic program in February 1992. Throughout his first year in office, unemployment continued to rise and with it government expenditure on welfare. In response, the government passed the Australian National Training Authority Act 1992 and Disability Discrimination Act 1992. Unemployment reached 11.4% at the end of 1992 – the highest level since the Great Depression.
The government introduced the Superannuation Guarantee in 1992 as part of a major reform package addressing Australia's retirement income policies. Since its introduction, employers have been required to make compulsory contributions to superannuation on behalf of most of their employees. This contribution was originally set at 3% of the employees' income, and has been incrementally increased.