Australian Antecedents of the Third Way

New Labour theorists have been prone to identify American New Progressivism as the proximate source of ‘third way’ ideas. In this article we argue that, if the focus is on the governing practice rather than on the naming of a governing orientation, a case can be made for seeing Australian Labor in government from 1983 to 1996 as a progenitor of third way thinking and as a specific source of New Labour policy development in a number of areas. Taking Stuart White's account of the main dimensions of third way programmatic realignment as our guide, we discuss the success of the Hawke/Keating Labor governments in reducing the direct provider role of state, developing new forms of collective provision, reforming the tax system, making social policy more employment‐friendly and creating the institutions of an asset‐based egalitarianism. We conclude by pointing out that, whilst there are many common themes in Australian Labor practice and New Labor rhetoric, and some evidence of specific policy transfer from one to the other, a plausible case can also be made for seeing many of the policy initiatives of the Hawke/Keating era as a reworking of an older Australian Labor tradition of regulatory state activism.