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Australia's latest Federal election, which was held on August 21, 2010, has resulted in the return of the Australian Labor Party (ALP), under Prime Minister Julia Gillard, albeit as a minority government. The government relies on the support of one Green and three independent members of the House of Representatives (i.e. the lower house of Australia's parliament) to hold office with a majority of just one seat. Meanwhile, the Greens will decisively control the balance of power in the Senate (i.e. the upper house) from the middle of 2011. In general terms, the ALP's views of foreign affairs and defence issues are broadly consistent with those of the Liberal/ National Party coalition. However, they are not necessarily consistent with those of the Greens. The implication is that it will be much harder for the government to take major new initiatives in foreign affairs and defence than was the case prior to the election - or indeed, during the previous coalition administration under Prime Minister John Howard (1996-2007). Australia's defence costs come from two areas. The first is the recurrent cost to support a small, professional, all-volunteer defence force, especially one with current international deployments in Iraq, Afghanistan, Timor Leste and the Solomon Islands. The second issue is the altogether more complex question of capital expenditure. Here there are competing demands from the three services against a limited budget that cannot accommodate all the demands made on it. The key direction is set from time to time by a defence white paper that attempts to establish the strategic outlook so that equipment and force needs can be put into perspective and prioritised. The earlier 2000 paper was replaced last year by the 2009 white paper, Defending Australia in the Asia Pacific Century: Force 2030. This document is now being questioned in light of the new political situation. Some procrastination and some delays in decision making seem almost inevitable. Despite the probability of some delays and some changed priorities, many of the main assets of both the navy and the air force will have to be replaced. The ageing fleet of F111's has now been taken out of service, to be replaced - on an interim basis - by new F/A18F Super Hornets; The previously announced expansion of the submarine program from six to twelve boats, on the other hand, is less certain. Much of the new equipment will be imported and the United States has traditionally been the largest supplier to the Australian defence forces. Local offset programs mean that work will be generated locally and the need to meet offset requirements makes participation by new players more complicated. A number of the major international players, including Boeing, Raytheon, Thales and BAE, have had a presence in Australia for many years. Local shipbuilder Austal is something of an exception. Australian based and owned, it also operates shipyards in the US that build vessels for the US Navy. [ABSTRACT FROM AUTHOR]

The article presents a discussion about national security and defense in Australia. The Australian Labor Party (ALP) led by Prime Minister Julia Gillard returned to power as a minority government following the federal election on August 21, 2010. It is noted that the nay and the air force need to replace some of their assets, including the F111 fleet. Defense companies in the country include Boeing, Raytheon and BAE.

The article gives an overview of Australian Prime Minister Kevin Rudd's new Labor government, and its declining popularity. His signing of the Kyoto protocol and his apology to the Aborigines were previously found to have boosted his ratings. His more frugal fiscal program was said to have led to spending cuts, savings and a budget surplus. The higher living costs, especially of fuel, his rejection of opposition coalition's Brendan Nelson's proposal for fuel price cuts and the non-carrying out of promised tax cuts, however, allegedly caused this decline.