Paul Keating facts for kids
Quick facts for kids
Paul Keating
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Official portrait, 1993
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| 24th Prime Minister of Australia | |
| In office 20 December 1991 – 11 March 1996 |
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| Monarch | Elizabeth II |
| Governor General |
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| Deputy | |
| Preceded by | Bob Hawke |
| Succeeded by | John Howard |
| 14th Leader of the Labor Party | |
| In office 19 December 1991 – 19 March 1996 |
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| Deputy |
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| Preceded by | Bob Hawke |
| Succeeded by | Kim Beazley |
| Deputy Prime Minister of Australia | |
| In office 4 April 1990 – 3 June 1991 |
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| Prime Minister | Bob Hawke |
| Preceded by | Lionel Bowen |
| Succeeded by | Brian Howe |
| Deputy Leader of the Labor Party | |
| In office 4 April 1990 – 3 June 1991 |
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| Leader | Bob Hawke |
| Preceded by | Lionel Bowen |
| Succeeded by | Brian Howe |
| Treasurer of Australia | |
| In office 11 March 1983 – 3 June 1991 |
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| Prime Minister | Bob Hawke |
| Preceded by | John Howard |
| Succeeded by | John Kerin |
| Minister for Northern Australia | |
| In office 21 October 1975 – 11 November 1975 |
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| Prime Minister | Gough Whitlam |
| Preceded by | Rex Patterson |
| Succeeded by | Ian Sinclair |
| Member of the Australian Parliament for Blaxland |
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| In office 25 October 1969 – 23 April 1996 |
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| Preceded by | Jim Harrison |
| Succeeded by | Michael Hatton |
| Personal details | |
| Born |
Paul John Keating
18 January 1944 Darlinghurst, New South Wales, Australia |
| Political party | Labor |
| Spouse |
Annita van Iersel
(m. 1976; div. 2008) |
| Domestic partner | Julieanne Newbould (1999–present) |
| Children | 4 |
| Residences | Potts Point, New South Wales, Australia |
| Education |
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| Profession |
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| Signature |  |
Paul John Keating (born 18 January 1944) is a former Australian politician. He served as the 24th Prime Minister of Australia from 1991 to 1996. He was also the leader of the Australian Labor Party (ALP) during this time. Before becoming prime minister, Keating was the Treasurer of Australia from 1983 to 1991. He also served as the seventh Deputy Prime Minister of Australia from 1990 to 1991 under Prime Minister Bob Hawke.
Keating was born in Sydney and left school at 14. He joined the Labor Party at the same age. He worked as a research assistant for a trade union. At 25, he was elected to the Australian House of Representatives for the area of Blaxland in 1969.
As Treasurer, Keating worked with Prime Minister Bob Hawke. They made big changes to Australia's economy. These changes included floating the Australian dollar and removing tariffs. He also helped create the first federal budget surplus in Australian history. Keating became known for his strong speaking style.
In 1991, Keating became prime minister. His government passed the Native Title Act. This law recognised Indigenous land rights. He also introduced compulsory superannuation to help Australians save for retirement. His government privatised companies like Qantas and the Commonwealth Bank. He also helped start the APEC leaders' meeting.
In 1996, his government lost the election to John Howard's party. Keating then retired from politics. Since then, he has shared his opinions on politics and worked in business. Many people praise his work as Treasurer for modernising Australia's economy.
Contents
Early Life and Education
Paul Keating was born in Darlinghurst, Sydney, on 18 January 1944. He was the first of four children. His father worked as a boilermaker for the New South Wales Government Railways. His family lived in Bankstown, a working-class suburb in western Sydney.
Keating left De La Salle Catholic College at 14. He chose not to go to university. Instead, he worked as a pay clerk for an electricity company. He also studied at Belmore Technical High School. He joined the Australian Labor Party as soon as he could. In 1966, he became president of New South Wales Young Labor. During the 1960s, Keating also managed a rock band called The Ramrods.
Starting in Politics
Through his connections in unions and Young Labor, Keating met future Labor leaders. He also became friends with former New South Wales Premier Jack Lang. Lang became Keating's political mentor. In 1971, Keating helped Lang rejoin the Labor Party.
Keating was chosen to run for the area of Blaxland in western Sydney. He was elected to the Australian House of Representatives in 1969 at 25 years old.
At first, Keating held some traditional views. However, he grew and changed his views over time.
After Labor won the 1972 election, Keating became a backbencher. This meant he was a regular member of parliament, not a minister. He was briefly appointed Minister for Northern Australia in October 1975. But he only served for a short time. The government was removed from power by the Governor-General the next month.
After Labor lost the 1975 election, Keating quickly joined the Shadow Cabinet. This is a group of opposition politicians who watch over government ministers. He was the Shadow Minister for Minerals, Resources and Energy until 1983. During this time, he became known as a strong and aggressive debater in parliament.
In 1981, he became president of the New South Wales Labor Party. This made him a leader of the powerful Labor Right group within the party. He initially supported Bill Hayden for Labor Leader. But by 1982, his group supported Bob Hawke. Keating then also supported Hawke.
Hayden stayed as leader for a while. To strengthen his position, Hayden made Keating the Shadow Treasurer in January 1983. However, Hayden resigned a month later after a poor election result. Hawke became leader without opposition. Six weeks later, Hawke led Labor to a big win in the 1983 election.
Treasurer of Australia
After Labor's win in 1983, Prime Minister Bob Hawke made Keating the Treasurer of Australia. He took over from John Howard. Keating and Hawke used the large budget deficit they inherited to question the economic plans of the other parties.
Hawke and Keating formed a very strong partnership. This was key to Labor's success in government. They were very different people. Hawke was a university graduate, while Keating left school early. But they worked well together. This allowed the government to make many important changes.
In their first month, Keating helped lead a "National Economic Summit." This meeting brought together business leaders, union leaders, and politicians. They agreed on a national economic plan. This gave the government the support to start big economic reforms.
Economic Reforms and Changes
Keating used his power as Treasurer to drive many big economic changes. In December 1983, Hawke and Keating decided to let the Australian dollar's value float freely. This meant its value would be set by markets, not by the government. This move was very successful and gave Keating confidence to make more changes.
Over the next few years, Keating slowly removed tariffs on imports. Tariffs are taxes on goods coming into the country. He also privatised some government-owned companies. These included Qantas (an airline) and the Commonwealth Bank. He also opened up the banking system. This allowed many foreign banks to operate in Australia for the first time. He also gave more independence to the Reserve Bank of Australia.
Keating also helped create the "Prices and Incomes Accord." This was an agreement between the government and trade unions. Unions agreed to ask for smaller wage increases. In return, the government increased social programs, like Medicare. This helped to lower inflation and unemployment. Keating's work on the Accord gave him a lot of political power. He could often make decisions without the full Cabinet. He was often called "the most powerful Treasurer in modern times."
In 1984, Keating won an award called "Euromoney Finance Minister of the Year." This award became known in Australia as "World's Greatest Treasurer." He was the first Australian Treasurer to win it.
Taxation and Budget Changes
Keating also led a big review of Australia's tax system. In 1985, he strongly supported a new consumption tax. This tax would be similar to the GST introduced later. He believed it would help fix Australia's trade problems.
Prime Minister Hawke had promised a paper on tax reform. This paper presented three options. Keating strongly supported Option C, which included a 15% consumption tax. It also included lower income taxes and new taxes on certain benefits and capital gains. Keating convinced the Cabinet to support it. But Hawke thought the public and unions would oppose it too much. So, the consumption tax plan was dropped. The other tax reforms were still adopted.
Even without the consumption tax, the changes were the biggest to Australia's tax system in decades. Keating kept pushing for more changes to fix trade issues. In 1986, he famously said that if Australia didn't fix its problems, it risked becoming a "banana republic." This meant a country with a weak economy. Hawke publicly disagreed with the remark. But the government increased efforts to deal with the growing trade crisis.
Without a consumption tax, Keating focused on cutting government spending. This led to some criticism from within the Labor Party. But the government managed to create a national budget surplus in 1988, 1989, and 1990. The 1988 surplus was the largest in Australian history.
During the 1987 election campaign, Keating helped Labor win. He showed a big accounting error in the opposition's economic plans. The opposition leader, John Howard, admitted the mistake. This greatly helped Labor win a big victory.
Later in his time as Treasurer, Keating was criticised for high interest rates. He argued these were needed to slow economic growth and control inflation. By the late 1980s, inflation was high. The Reserve Bank raised interest rates, which peaked at 18%. Many people believe the bank was too slow to lower rates, leading to a recession. Keating privately wanted rates to rise earlier and fall sooner.
In 1990, Keating announced that Australia was in a recession. He famously said it was "the recession Australia had to have." This remark was controversial. But many economists say Keating's economic reforms laid the groundwork for a long period of economic growth in Australia.
Leadership Challenges
By late 1988, Keating believed he would become prime minister after Hawke. Hawke agreed to step down after the 1990 election. Hawke won the election and made Keating his deputy prime minister. However, by late 1990, Keating was frustrated. Hawke had not indicated when he would retire. Keating gave a speech that questioned the government's direction. As a result, Hawke said he would not keep his promise.
Keating resigned from the Cabinet in June 1991 and challenged Hawke for the leadership. Hawke won the vote. Keating said he had fired his "one shot." He even thought about leaving politics. But Hawke's leadership seemed weaker. After Hawke had to fire the new Treasurer, Keating challenged again in December 1991. This time, he won and became prime minister.
Prime Minister of Australia (1991–1996)
On 20 December 1991, Keating became prime minister. He had a big plan for Australia. This included working towards reconciliation with Australia's Indigenous population. He also wanted to strengthen Australia's ties with Asia and make Australia a republic. These goals were known as Keating's "big picture."
Indigenous Rights and Social Policy
Soon after Keating became prime minister, the High Court of Australia made an important decision. This was known as the Mabo judgment. It said that native title (Indigenous land rights) did exist in Australia. This overturned the idea of terra nullius (land belonging to no one).
Keating led the government's response. He started a public campaign to raise awareness about Indigenous land rights. On 10 December 1992, Keating gave a famous speech. It was called the Redfern Park Speech. In this speech, he clearly stated that settler Australians were responsible for harming Indigenous society. This speech is considered one of the most important in Australian political history.
This work led to the Native Title Act in 1993. This law created a national system to recognise and protect native title. It also set up an Aboriginal and Torres Strait Islander Social Justice Commissioner. This person would report on how the Act affected the human rights of Indigenous peoples.
In other domestic policies, Keating created the first national cultural policy, called 'Creative Nation'. This policy provided money to support the arts in Australia. Keating believed strongly in the benefits of the arts. During his time as prime minister, mandatory detention for asylum seekers was also introduced for the first time.
Superannuation and Economic Policy
One of Keating's biggest achievements as prime minister was the full introduction of the National Superannuation Scheme. This was designed to help Australians save for retirement. It built on policies he started as Treasurer.
In 1992, a compulsory employer contribution scheme was introduced. This meant employers had to pay money into a superannuation fund for their employees. This was part of a plan to ensure Australians had enough money when they retired. It was known that Australia's population was getting older. This would put a strain on the economy if there were too many people relying on government pensions.
Keating's solution had "three pillars." These were compulsory employer contributions, voluntary extra contributions, and a government pension for those who still needed it. This policy has made Australia one of the largest holders of pension fund assets in the world.
After the 1990 recession, Keating appointed John Dawkins as Treasurer. They created an economic plan called 'One Nation'. This plan used money from the budget surplus for new welfare-to-work programs. It also increased competition in the telecommunications industry. 'One Nation' also planned tax cuts for middle-income workers. Another major economic policy was the introduction of enterprise bargaining. This allowed for more flexible wage agreements in workplaces.
Foreign Policy and International Relations
As prime minister, Keating worked to strengthen Australia's relationships with its closest neighbours. He often said that Indonesia was the most important country to Australia. His first overseas visit as prime minister was to Indonesia. He was the first Australian prime minister to do this. Keating tried to build a personal relationship with Indonesian President Suharto.
Keating also helped expand the Asia-Pacific Economic Cooperation (APEC) forum. He convinced US President Bill Clinton and Chinese Premier Li Peng to expand APEC to a full Leaders' Meeting in 1993. This made APEC a very important international summit. At the 1994 APEC meeting, members agreed to the Bogor Declaration. This set goals for increasing free trade and investment in the Asia-Pacific region.
In December 1993, Keating had a diplomatic incident with Malaysia. He called Prime Minister Mahathir Mohamad "recalcitrant" (meaning uncooperative). This happened after Mahathir refused to attend the 1993 APEC summit. The word was translated badly in Malaysia, making it a worse insult. Mahathir demanded an apology. Keating later apologised for the remark.
Elections in 1993 and 1996
As prime minister, Keating kept his strong debating style. He often used sharp words against the opposition. Many people thought Labor would lose the 1993 election.
During the campaign, Keating strongly attacked the opposition's proposed goods and services tax (GST). He argued it would harm the economy. He was helped when the opposition leader, John Hewson, struggled to explain which products would have the GST. On 13 March, Keating led Labor to an unexpected fifth election victory in a row. His victory speech was very inspiring for Labor supporters.
Keating benefited from disunity in the Liberal Party. After the 1993 election, John Hewson was replaced as Liberal Leader by Alexander Downer. Downer's leadership had problems. In early 1995, Downer resigned and John Howard became leader again. Howard had led the Liberals before. Howard adopted a "small target" strategy for the 1996 election. He promised to keep many of Labor's reforms, like Medicare.
This, combined with a feeling that it was "time for a change," led to a big defeat for the Keating government on 2 March 1996. Labor lost many seats. Keating announced he would retire as Labor Leader and from Parliament. He resigned as prime minister on 11 March.
After Politics
After leaving Parliament in 1996, Keating moved to Woollahra in Sydney. He became a director for various companies. He also worked as a senior adviser for an investment banking firm. Keating was also appointed to an advisory council for the China Development Bank. He became a visiting professor at the University of New South Wales. He also received honorary doctorates from several universities.
In 1997, Keating declined an honour called the Companion of the Order of Australia. This honour is usually offered to former prime ministers. Keating said he believed honours should be for people whose community work goes unrecognised. He felt being prime minister was enough public recognition.
In 2000, he published his first book, Engagement: Australia Faces the Asia-Pacific. This book focused on foreign policy during his time as prime minister. In 2002, his former speechwriter, Don Watson, published a book about Keating. Keating was unhappy with the book, and their friendship ended.
Keating initially avoided public political comments about the Howard government. But he sometimes gave speeches criticising Howard's social policies. Before the 2007 election, Keating campaigned against Howard. He used strong and colourful language to describe Howard.
In 2008, Keating joined other former prime ministers to witness new prime minister Kevin Rudd deliver the National Apology to the Stolen Generations. In 2013, Keating took part in a series of long interviews with journalist Kerry O'Brien. These interviews covered his life and political career. O'Brien used these conversations for a 2014 book. Keating has said he will not write his own autobiography.
In 2016, a journalist named Troy Bramston wrote a biography about Keating. Keating cooperated with Bramston and gave him access to his personal papers.
In 2019, Keating spoke out against the Australian Security Intelligence Organisation. His comments were criticised. He later issued a joint statement with Bob Hawke supporting Labor's economic plan. After Hawke's death in the same month, Keating gave a speech at Hawke's memorial service. He spoke about their "great friendship and partnership."
In September 2021, Keating criticised the AUKUS military alliance between Australia, the United States, and the United Kingdom. He said Australia was turning its back on Asia. In 2023, Keating called the AUKUS pact "the worst deal in all history."
Personal Life
In 1976, Keating married Annita van Iersel. She was a flight attendant from the Netherlands. They had four children. Their children spent some of their teenage years living in The Lodge, the prime minister's official residence. The couple separated in 1998 and divorced in 2008. Since 1999, Keating's partner has been actress Julieanne Newbould.
Keating's interests include the music of Gustav Mahler and collecting French antique clocks. He lives in Potts Point, in Sydney. He also has a holiday home on the Hawkesbury River.
Keating supports the Canterbury-Bankstown Bulldogs rugby league team.
See also
- First Keating Ministry
- Second Keating Ministry
