Peter Costello

Peter Costello
Born	Peter Howard Costello (1957-08-14) August 14, 1957 Melbourne, Australia
Occupation(s)	Lawyer, businessman, politician
Years active	1980s–present
Known for	Treasurer of Australia (1996–2007), Deputy Leader of the Liberal Party (1994–2007), Chairman of Nine Entertainment (2016–2024)

Peter Howard Costello AC (born 14 August 1957) is an Australian lawyer, businessman, and former politician who held the position of Treasurer of Australia from 1996 to 2007 under the Howard government, making him the nation’s longest-tenured treasurer. He represented the Division of Higgins in the Australian House of Representatives from 1990 until 2009 and served as Deputy Leader of the Liberal Party between 1994 and 2007.

On 18 September 2008, Costello was named chairman of the World Bank’s Independent Advisory Board responsible for anti-corruption initiatives. He was Chairman of Nine Entertainment from February 2016 through June 2024 and currently leads the Board of Guardians overseeing the Australian Future Fund.

Early life

Born in Melbourne on 14 August 1957 into a middle-class Christian household, Costello is the second child among three siblings. His older brother, Tim Costello, is a well-known Baptist minister and former CEO of World Vision Australia. Costello completed his secondary education at Carey Baptist Grammar School in 1974 and later earned honours degrees in arts and law from Monash University in 1982. He descends from Irish immigrant Patrick Costello (Australian politician), who was expelled from the Parliament of Victoria in the 1860s due to electoral fraud.

During the 1980s, Costello practiced as a solicitor at Mallesons Stephen Jaques before transitioning to a barrister role, where he represented employers in significant industrial relations cases.

In 1982, he married Tanya (née Coleman), daughter of writer and former Liberal politician Peter Coleman and historian Verna Coleman.

Costello acted on behalf of the National Farmers' Federation in legal proceedings during 1983–84 against the Australasian Meat Industry Employees Union (AMIEU) concerning a unit tally system at Northern Territory abattoirs, notably involving the Mudginberri dispute, which concluded unfavorably for the AMIEU.

He gained recognition as junior counsel assisting Alan Goldberg QC in the 1985 Dollar Sweets case, successfully defending a confectionery company in a widely publicized industrial dispute.

Political background

While a student, Costello engaged actively in campus politics, holding an office within the Social Democratic Students Association of Victoria, which was linked to the Balaclava Branch of Australian Young Labor. In 1977, he attracted media attention after being assaulted by a left-wing student politician.

Following graduation, his political stance shifted towards conservatism while retaining progressive perspectives on certain social matters. In 1984, he co-founded the H. R. Nicholls Society, a think tank focused on industrial relations reform. By the late 1980s, he was aligned with the New Right movement, partly organized through this society.

Early political career

Costello secured preselection in 1990 for the safe Liberal seat of Higgins in Melbourne by defeating incumbent Roger Shipton; this seat had previously been held by Harold Holt and John Gorton. Entering Parliament at age 32, his maiden speech emphasized government transparency and protection of individual liberties.

After Andrew Peacock resigned as Liberal Leader, Costello endorsed John Hewson and was appointed shadow minister for Consumer Affairs before becoming Shadow Attorney General. Although Hewson supported Costello’s local campaign, Hewson reportedly distrusted him due to his admiration for John Howard and made it clear that Costello would not be appointed to ministerial office under his leadership.

Hewson accused Costello of speaking critically about him to journalist Laurie Oakes; Costello denied these claims. He attributed Hewson’s defeat at the 1993 election to Hewson’s lack of political experience and overambitious reforms—including contentious GST proposals that alienated various groups and challenges promoting zero tariffs to the automotive industry.

Afterward, Costello advanced to Shadow Finance Minister and emerged as an alternative leadership figure to Hewson. He played a pivotal role in exposing the "sports rorts affair," which led to Sport Minister Ros Kelly’s resignation over mismanagement of funding allocations. When Hewson was replaced as leader in 1994, Costello backed Alexander Downer and became Deputy Leader as well as shadow Treasurer. Victorian Premier Jeff Kennett later accused Costello and ally Michael Kroger of undermining Hewson prior to that leadership change.

When Downer stepped down in January 1995, Costello did not pursue leadership but threw his support behind John Howard. Allegations surfaced that a December 1994 meeting between Howard, Costello, and Ian McLachlan involved an understanding that Howard would eventually relinquish leadership to Costello after one and a half terms; Howard denied any formal agreement.

In 2009, Hewson reflected that Costello’s prime opportunities for party leadership were during the 1994 spill or shortly after Downer’s resignation months later.

By 2006, Costello had become the longest-serving Deputy Leader in Liberal Party history, surpassing Sir Eric Harrison’s record. He spent nearly all his parliamentary career on the front bench except for its final two years.

Federal Treasurer (1996–2007)

The Howard-led Liberal/National coalition secured a decisive victory in the 1996 election with a 29-seat gain, appointing Costello as Federal Treasurer at 38 years old—the same age Howard had when he first assumed the position in 1977. Over his tenure, Costello presented twelve successive Federal Budgets, achieving ten surpluses and overseeing the reduction of Commonwealth Government net debt by $96 billion. He also orchestrated the sale of two-thirds of the Reserve Bank’s gold reserves at historically low prices. Throughout this period, inflation, unemployment, and interest rates all declined and remained relatively stable at low levels.

A major priority during his term was tax reform. Although Howard had pledged during the 1996 campaign not to introduce a Goods and Services Tax (GST), it became official Liberal policy by the 1998 election and was enacted with support from the Australian Democrats. Until July 2005, Costello’s efforts to deregulate the labor market were hindered by a lack of majority control in the Senate.

In 1998, Costello and his wife Tanya, together with Tony Abbott and his wife Margaret, successfully brought legal action against author Bob Ellis for defamatory statements in his book Goodbye Jerusalem.

Costello was an advocate for republicanism at the 1998 Australian Constitutional Convention, supporting change primarily due to opposition to the monarchy rather than concerns about independence. He endorsed the 1999 referendum proposing Australia become a republic.

After the 2001 election, Costello faced criticism for failing to secure funding to expand the Medicare safety net.

In 2002, the government reinstated the Baby Bonus program aimed at mitigating child-rearing costs and addressing issues related to Australia’s aging population and fertility rates. Costello promoted this initiative with a campaign encouraging Australians to "have one for mum, one for dad and one for the country."

During a February 2006 Sydney Institute lecture, Costello sparked debate by opposing legal recognition of same-sex marriage while simultaneously affirming protections for same-sex couples’ rights and superannuation benefits established since 2004. He also expressed criticism of what he termed "mushy misguided multiculturalism," emphasizing that immigrants must embrace Australian values.

Under Howard

Costello expected to assume Liberal leadership during Howard’s second term, based on an alleged offer made in 1994. When this transition did not materialize, his frustration increased, particularly after Howard declared in July 2003 his intention to lead into the 2004 election.

Throughout the 2004 campaign, Howard refrained from committing to a full term if re-elected, stating he would continue only with party backing. The government’s subsequent Senate victory led to speculation that Howard would postpone retirement, thereby diminishing Costello's chances of succession—a scenario that ultimately unfolded.

In July 2006, Ian McLachlan publicly revealed details of the purported Costello-Howard succession agreement. Costello confirmed the meeting and shared McLachlan’s perspective on it. Howard consistently denied these claims, dismissing the public discourse as "hubris and arrogance," and emphasizing that leadership decisions rest with the party room.

Press Gallery columnist Michelle Grattan observed:

Despite underlying tensions, neither Howard nor Costello took steps to resign or force removal. On 12 September 2007, amid renewed leadership speculation and declining poll numbers, Howard announced he would relinquish leadership well into the next term if re-elected, naming Costello as his "logical successor."

The federal election held on 24 November 2007 resulted in defeat for the Coalition. An exit poll indicated that 59% of voters opposed Costello becoming Prime Minister. Following the end of Howard’s government, contact between Howard and Costello ceased.

Opposition period (2007–2009)

Following the 2007 election, many anticipated that Costello would take on the leadership of the Liberal Party. However, contrary to expectations and despite receiving support from John Howard, he chose not to pursue either the leadership or deputy leadership roles. Shortly afterward, he indicated that he might not fulfill his full term in Parliament.

As Brendan Nelson encountered difficulties as opposition leader, rumors surfaced about a possible leadership challenge from Costello. By August 2008, Costello dismissed any intention to contest Nelson's position but did not comment on whether Nelson might resign. In September 2008, coinciding with the publication of his memoirs, The Costello Memoirs, he restated his decision not to seek the party leadership and confirmed plans to exit politics on his own terms. This announcement redirected media attention toward Malcolm Turnbull, then serving as shadow treasurer, who soon replaced Nelson in a leadership spill held on the day Costello’s book was released.

During this time, Costello served as a backbench member of the opposition and was appointed in September 2008 to the Independent Advisory Board of the World Bank, where he contributed advice on anti-corruption initiatives.

On 15 June 2009, Costello declared his intention to retire at the forthcoming federal election but chose to resign earlier on 19 October 2009. This resignation triggered the 2009 Higgins by-election. His departure preceded the emissions trading scheme (ETS) crisis that resulted in Turnbull losing the Liberal leadership to Tony Abbott.

Post-political career

From December 2009 until February 2024, Costello was a member of the Board of Guardians for the Australian Government Future Fund. His potential appointment as Chairman sparked controversy when David Gonski was selected instead, despite an independent review favoring Costello.

He holds a managing partner role at BKK Partners, a boutique corporate advisory firm founded by former managers from Goldman Sachs JBWere, and also chairs the advisory board of ECG Advisory Solutions.

In 2008, Melbourne University Press released his bestselling memoir. Additionally, Costello contributed a regular column to Fairfax newspapers until 2013.

In October 2010, John Howard’s memoir Lazarus Rising criticized Costello’s approach to leadership and handling of party transitions. In response, Costello attributed the government's electoral defeat and his own loss of parliamentary seat to Howard’s leadership.

In May 2012, Michael Kroger alleged that Costello aimed to return to Federal Parliament with aspirations to lead the Liberal Party again; Costello refuted these claims and stated that Kroger had sought his support for his former wife Helen Kroger’s Senate candidacy.

Costello was appointed chairman of Nine Entertainment in February 2016. He stepped down from this role in June 2024 following assault allegations at Canberra Airport, which he has denied.

Honours

On 26 January 2011, Peter Costello was awarded the title of Companion of the Order of Australia (AC) in recognition of his distinguished service to the Australian Parliament. This included significant contributions to economic policy reforms in areas such as taxation, foreign investment, superannuation, corporate regulation, and involvement with international financial organisations.

External links

• Official Website of Peter Costello
• Profile – Prominent alumni at Monash University