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Stratosphere Kev
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In his second term, Kevin Rudd expressed his interest of increasing bi-lateral ties with Asia, specifically more emphasis on improving relations between China and Australia. The environment was also a main priority, including new initiatives to control pollution and putting Australia at the forefront of combating Climate change. In an effort to secure his position he demoted Wayne Swan, replacing him with the youthful Chris Bowen. To appease the Gillard loyalists within Labor, he offered Bill Shorten the post of Minister for Employment and Workplace Relations, which he agreed. Other areas of concern were the continuing deficits in government expenditure. The means testing legislation designed to reduce the deficit never eventuated, as its unpopularity became apparent. In a policy stunt, Rudd adopted the Green's proposal for a emissions tax to provide more federal revenue, though this was later ruled out after significant media attention. He however clarified that he was confident the budget would return to a state of surplus in 2013.

The Liberals, after losing for the second time were desperate to find a new leader. In February 2011, former leader of the opposition, Malcolm Turnbull, rolled him after the recent polling rates had been released, which showed a significant decline in Coalition support.

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