Prime Minister John Howard's conservative government narrowly won re-election and the chance to reform Australia's tax system on Saturday, suffering a greatly diminished majority in Parliament.
The Australian Broadcasting Corp. predicted the conservatives lost at least 20 of their previous 41-seat majority. But they will be in office to preside over the Sydney 2000 Olympics and the centenary of Australia's federation as a nation in 2001.With 80 percent of the vote counted, ABC and the domestic news agency Australian Associated Press said the main opposition Labor Party had cut deep into Howard's parliamentary majority, but not enough to win government.
"I want first and foremost to thank the Australian people for returning the government," Howard said at his victory rally in Sydney. "I want to thank the Australian people for embracing a bold economic reform that is in the long-term interest of the Australian community."
But it was far from clear that most Australians were enthusiastic about Howard's reforms, which include a new 10 percent tax on goods and services.
Howard's majority was eroded as voters deserted him for opposition parties that may yet be able to block his tax reforms and his plan to sell off the rest of the national telephone company, Telstra Corp., in the Senate.