New Aussie PM Gillard uses charm and steel to triumph

SHE has been in the job for just eight days, but new Australian Prime Minister Julia Gillard has turned the government's fortunes round and could lead Labor into a second term at an election expected within months.

Gillard has already secured two victories her predecessor, Kevin Rudd, could only dream of – the end to a bitter row over a new mining tax and a resurgence in voter support.

Under Rudd, dumped as Labor leader in favour of his deputy a week ago, a public fight with global miners over a planned "super-profits" tax was dragging the government towards electoral defeat.

"The change from Rudd to Gillard has made all the difference in the world," said analyst Rob Chalmers, who has been writing about Australian politics for more than 50 years.

Gillard, 48, is Australia's first woman prime minister. She replaced Rudd on 24 June, in a move that has reshaped politics.

The latest polls show Gillard has lifted Labour's support after steady falls since March, giving the party a real chance of winning a second term. She has done so with a mix of charm and political steel.

Her move against Rudd was swift and calculated. But ever since, Gillard has reverted to a calm and often charming style in the media, particularly in testy television interviews.

Treasurer Wayne Swan said Gillard's arrival changed the atmosphere in a row in which neither Rudd nor the miners were giving ground.

"It is fair to say that her intervention changed the tone of this debate. It has led to this breakthrough," said Swan.

Chalmers said miners realised Gillard had a much better chance of winning an election than Rudd, which meant a new mining tax would probably be inevitable. Conservative leader Tony Abbott has promised to dump the mining tax if elected.

"The miners were not going to negotiate a deal, as they were not going to do anything to help Rudd win the election. They wanted him to lose," Chalmers said.

"He gets dumped and Julia comes in, and suddenly Abbott doesn't look like he is going to win the election. So what do the miners do? They have to cut a deal with her, as she had the whip hand now."

A fortnight ago, mining companies warned that a new tax would undermine investment and they were determined not to pay up.

Now, they have agreed to pay an extra A$10.5 billion over two years from mid-2012, after Gillard lowered the headline rate to 30 per cent, raised the trigger point for the new tax and made other concessions.

Gillard's compromise is being seen as minor, given such a revenue windfall, yet if Rudd had done the same it would have probably been seen as weakness, after he had failed to deliver on several other major policies.

"She gets things done," said Swan.

Rudd, in contrast, was a bookish former bureaucrat, who over his 30 months in government set up dozens of committees and inquiries but sometimes struggled to push reforms through parliament.

Gillard is a lawyer with a union background. She is known as a strong negotiator. Those who have sat across the table from her say she knows how to listen and consider alternative views, and how to draw rivals into agreement.

Many expect Gillard will attract a strong female vote at the election, but her tough style has also won over many male voters. Gillard's next big challenge is whether she can woo voters as easily as she wooed the leaders of the mining giants, and that is by no means a fait accompli. So what do the miners do? They have to cut a deal with her, as she had the whip hand now."

A fortnight ago, mining companies warned that a new tax would undermine investment and they were determined not to pay up.

Now, they have agreed to pay an extra A$10.5 billion over two years from mid-2012, after Gillard lowered the headline rate to 30 per cent, raised the trigger point for the new tax and made other concessions.

Gillard's compromise is being seen as minor, given such a revenue windfall, yet if Rudd had done the same it would have probably been seen as weakness, after he had failed to deliver on several other major policies.

"She gets things done," said Swan.

Rudd, in contrast, was a bookish former bureaucrat, who over his 30 months in government set up dozens of committees and inquiries but sometimes struggled to push reforms through parliament.

Gillard is a lawyer with a union background. She is known as a strong negotiator. Those who have sat across the table from her say she knows how to listen and consider alternative views, and how to draw rivals into agreement.

Many expect Gillard will attract a strong female vote at the election, but her tough style has also won over many male voters. Gillard's next big challenge is whether she can woo voters as easily as she wooed the leaders of the mining giants, and that is by no means a fait accompli.