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Since being elected in 1996, the Howard government has attempted to reduce Australia's government deficit and to reduce the influence of labour unions, placing more emphasis on workplace-based collective bargaining for wages. The government also has accelerated the pace of privatisation, beginning with the government-owned telecommunications corporation, Telstra. Howard's government has continued some elements of the foreign policy of its predecessors, based on relations with four key countries: the United States, Japan, China, and Indonesia. The Howard government strongly supports US engagement in the Asia-Pacific region. However some observers noted a greater push towards engagement with Western nations than the previous Keating government which emphasised that Australia was part of Asia. These observers point to various controversies such as the Tampa affair in which the MS Tampa, a Norwegian cargo ship was at the center of a diplomatic dispute between Australia, Norway and Indonesia off the coast of Christmas Island as indicating a shift back towards the more conservative policies of the mid-20th century.
On 1 January 1901, Federation of the Colonies was achieved after a 10-year gestation period, and the Commonwealth of Australia was born, as a dominion of the British Empire. The Australian Capital Territory was formed from New South Wales in 1911, to provide a neutral place for the proposed new federal capital of Canberra (the initial capital being Melbourne from 1901 to 1929). Although Australia had become independent in many respects, the British government retained some powers until the Statute of Westminster of 1931 was ratified by Australia in 1942, and the theoretical authority of the British Parliament over the Commonwealth Constitution and those of individual states was not completely severed until the passing of the Australia Act in 1986. The original constitution gave the federal government power to make laws relating to any race of people except Aborigines. In 1967, a referendum supported by more than ninety per cent of voters gave the federal government the right to enact laws to protect Aboriginal people and to count them in the census.
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Australia has had a significant school of painting since the early days of European settlement, and Australians with international reputations include Sir Sidney Nolan, Russell Drysdale, Arthur Boyd and Albert Namatjira. There are excellent art galleries; a rich tradition in ballet, enlivened by the legacy of Dame Margot Fonteyn and Sir Robert Helpmann; a strong national opera company, Opera Australia, made prominent by the world renowned diva Dame Joan Sutherland; and symphony orchestras in all capital cities, in particular the Melbourne and Sydney symphony orchestras. In this field, conductor Sir Charles Mackerras has achieved international renown.
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