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...in spite of the misguided "leadership" of the current PM, I wouldn't label Australia "conservative." IMNSHO, only Canada beats Oz overall on civil rights (especially gay rights); safe and legal abortion isn't in jeopardy, and the nation is a model of excellence for universal healthcare and other social programs. It's also obsessive to a fault about environmental concerns, and rightly so.
Over the past couple of decades, the overwhelmingly Caucasian majority of the populace woke up to the injustices inflicted on the Aborginal natives, and has begun making reparations (a far cry from what we've done to Native Americans -- which has been to shut them off and forget about them... until they make a fortune on gaming casinos, and then suddenly, we're very interested in getting a piece of that pie).
Speaking of gaming, slot parlors are legal in most states -- and prostitution is legal in a number of cities... in properly government-regulated brothels. There are also no "blue laws" ... and the age of sexual consent (by state) is as low as 16.
Quite frankly, were it not for a long history of U.S. intervention (read: arm-twisting interference) in Australian domestic policy, Oz would be a lot more "liberal" than it already is. (Anyone who doesn't believe that needs to read up on Gough Whitlam -- for just one example of the U.S. buggering yet another foreign government to get what it wants. See also: bloodless coup.)
Oh, and -- Cardinal Pell aside -- Oz isn't predominantly Catholic. Strong Catholic culture? AFAIK, mainly among the Italians and Irish. Aside from the Aboriginals, you're looking at mostly Protestants with roots in the U.K.
Religion aside, Australian culture itself is very liberal; nobody gives a damn if you're gay, straight, or plan to shack up with a kangaroo -- as long as you're honest and loyal to your mates (and the kangaroo consents). And -- bloody oath -- of all the Australians I've met (and these folks LOVE talking to Yanks), only one ever expressed even vague support for Bush*'s war. Literally scores of others have dismissed my sense of guilt for what my country has done with the common sentiment, "Don't feel bad at all -- we're in the same boat with Howard. We didn't want to invade Iraq either." (This is usually followed by a tirade about Howard, peppered liberally with the word "dickhead.")
Again, I don't mean to be a point-killer (I agree with your O.P.), but I can't possibly sit back and let Australia be branded as "conservative" in the sense we Yanks use the word.
Oz certainly has a ways to go in some areas (boat-people detention, same-sex marriage, et al.), but conservative, it's not.
P.S. Australia also has a real, live opposition party -- not to mention a diverse multi-party system that actually works, and -- don't faint -- the parties actually work together in coalitions! Can you imagine that -- Labour and Greens actually joining forces on common goals??
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