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→World War II
*see [[John Curtin]] for the Prime Minister and main policies
*see [[John Curtin]] for the Prime Minister and main policies
* see [[Rationing]] for economic controls
* see [[Rationing]] for economic controls
The historic ethnic tensions surfaced in new forms. The Irish, who dominated the labor Party, had always been hostile to the British Empire, but now they compromised and were willing to fight for Australia, and leaped at the chance to realign Australia with the United States.
The oppositon (the United Australia Party and the Country Party) strongly favoured the British Empire, and were eager to send the Navy and Air Force, which came under British command. They were also eager to send all four of Australia's divisions to help out but were stunned when the 8th Division in Malaya was surrendered to the Japanese with the fall of Singapore. Everyone agreed that two of the three divisions in the Middle East had to be returned promptly, but the oppositionb secretly supported [[Winston Churchill]]'s scheme that would divert the divisions to defending Burma. Curtin refused and the divisions came home.
====Finances====
====Finances====
Total government spending for both war and civil purposes for the six years ending June 30, 1945, reached £A2,790,000,000 ($9,067,500,000). Half was met from taxes and half from from loans. War expenditures alone totalled £A2,111,000,000 ($6,860,000,000) 45% came from taxes. The total amount borrowed was £A1,387,000,000, which was made up of public loans £A898,000,000; war savings certificates £A53,000,000; treasury bills £A343,000,000; temporary use of treasury balances £A85,000,000, and interest-free loans £A8,000,000.
Total government spending for both war and civil purposes for the six years ending June 30, 1945, reached £A2,790,000,000 ($9,067,500,000). Half was met from taxes and half from from loans. War expenditures alone totalled £A2,111,000,000 ($6,860,000,000) 45% came from taxes. The total amount borrowed was £A1,387,000,000, which was made up of public loans £A898,000,000; war savings certificates £A53,000,000; treasury bills £A343,000,000; temporary use of treasury balances £A85,000,000, and interest-free loans £A8,000,000.