The 1987 Australian federal election was held in Australia on 11 July 1987, following the granting of a double dissolution on 5 June by the Governor-General Sir Ninian Stephen. Consequently, all 148 seats in the House of Representatives as well as all 76 seats in the Senate were up for election. The incumbent Australian Labor Party, led by Prime Minister Bob Hawke, defeated the opposition Liberal Party of Australia, led by John Howard and the National Party of Australia led by Ian Sinclair. This was the first, and to date only, time the Labor Party won a third consecutive election.
Future Opposition Leader John Hewson entered parliament at this election.
Since the introduction in the previous election in 1984 of leaders' debates, this was the only election in which there was not at least one leaders' debate due to Hawke's refusal to debate Howard.
Background
The Hawke government had been in power since the general election of 1983, and had been re-elected in the snap election of 1984, although with a decreased majority. Hawke, in partnership with Treasurer Paul Keating, had pursued an ambitiously reformist agenda over the course of his time in office, which included floating the Australian dollar, reducing tariffs on imports and completely reforming the tax system. However, the government's popularity dropped sharply throughout the course of its 1984–87 term, mostly due to a series of blunders such as its failed 'tax summit' (designed to gain support for Keating's proposed consumption tax), and declining terms of trade, which Treasurer Keating argued threatened to reduce Australia to the status of a banana republic unless tough measures were taken to correct the balance of trade.
Meanwhile, for much of the 1984–87 term, the opposition Liberal-National coalition led in the polls, leading to speculation that it could regain office in 1987. However, both coalition parties were also wracked by infighting throughout the parliament. In September 1985, Andrew Peacock, who had led the party to a surprising rebound in the 1984 general election, was replaced as leader of the Liberal party by the then Deputy Leader and Shadow Treasurer John Howard, after a botched effort to remove the latter from the Deputy Leadership and replace him with Queenslander John Moore, resulting in Peacock's resignation. Nonetheless, the party remained divided, as Howard was seen by some Liberals as being too far to the right, and these opponents of the Howard policy agenda rallied to Peacock, who was eventually sacked from the shadow ministry in March 1987, following unfortunate remarks regarding Howard by Peacock to Victorian state opposition leader Jeff Kennett in an infamous car phone conversation.