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PREVIEW AAP Senior Correspondent Doug Conway reviews the stories that dominated Australia in 2012. IMAGES AAP
THE YEAR IN NEWS [ GILLARD PREVAILS ] Julia Gillard comfortably fended off a leadership challenge from the man she deposed as prime minister, defeating Kevin Rudd 71-31 in a Labor caucus ballot. Her minority government survived despite the resignation of Liberal renegade Peter Slipper as speaker over sexual harassment allegations and the enforced move of embattled former union boss Craig Thomson to the crossbenches. She succeeded in passing controversial legislation introducing both a carbon price and a new mining tax, survived a cabinet revolt over Palestine’s UN status and flatly denied any wrongdoing as a young industrial lawyer in setting up a union slush fund for a former boyfriend. Australia’s first female prime minister proved less unpopular in the polls than Opposition Leader Tony Abbott, whom she painted as a sexist and misogynist. But her biggest challenge remains, as an election year looms with her unpopular government still mired in election-losing territory. [ ECONOMIC STRENGTH ] Australia’s economy remained one of the best-performing in the developed world, having sidestepped the GFC, which crash-tackled many other nations. The economy grew by 3.7 per cent in the year to June, half as fast as China’s, easing back to 3.1 per cent later in the year. The resources boom remained the driving force. Although commodity prices
fell by 20 per cent against their peak in mid-2011, cutting sharply into revenues, the investment peak is yet to come. The Reserve Bank cut the cash rate by 1.25 percentage points during the year to three per cent to head off a slowdown, though commercial banks did not pass on the cuts in full to home owners with mortgages. Unemployment remained at a very low 5.2 per cent. The strong Aussie dollar hit 108 US cents before settling back around 104, still above dollar-fordollar parity. It also hit historic highs of 86 euro cents, and remained above 80. [ RINEHART’S RISE ] The resources boom propelled mining heiress Gina Rinehart to a $29 billion fortune, making her not only Australia’s but the world’s richest woman. Her wealth ballooned by an unparalleled $18.87 billion in one year, according to BRW magazine’s annual rich list, meaning she acquired a million dollars every half hour, though falling commodity prices have since pared back her fortune. She bought 13 per cent of Fairfax Media, agitated for a board seat, and became embroiled in a so-called “class war” with federal Treasurer Wayne Swan. She was also at the centre of a bitter family squabble, failing in a bid to dismiss court proceedings after her three eldest children sought to oust her as trustee of the multimillion-dollar family trust.
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