The Hawke Labor government in Australia, elected in 1983, conforms to a well-defined international trend away from stong public support for education and welfare spending. This paper focuses on the education policies of the Hawke government and compares them with those of the previous Fraser government and with those of the Reagan administration in the United States. Two charts detail philosophical and financial differences and similarities among the three governments. The Hawke socialist government's similarities to conservative administrations are partly attributable to common constraints imposed by large federal deficits and the decade's conservative social climate. The Hawke government has pursued consensual and pragmatic strategies and has ignored party policy. Hawke has failed to halt the downward spiral in budget education allocation so that the position of public schools has deteriorated. Program initiatives have promoted educational access for some disadvantaged groups such as Aborigines. The government's legacy may be educational policies destined to increase inequalities in Australian society. The Hawke and Reagan governments contrast ideologically concerning the federal role. The Reagan administration's conservative philosophy emphasizes excellence and choice, whereas the Hawke socialist perspective focuses on equity issues. (CJH)