Australia is still in the process of overall restructuring in 2016-2017，of which the industrial restructuring is at the critical upgrading stage，but the slim majority Coalition government after the 2016 election has faced difficulties in providing the social，political and economic support needed，thus resulting in an economic downturn and a fall of domestic political support. Though the overall current situation in Australia is stable and the recent development is quite certain，but the Coalition parties do not improve much and domestic political debate and strife will intensify. The release of the Foreign Policy White Paper has systemized the current government’s foreign and security strategies，but the White Paper has been unable to provide a clear road map for Australia to take its international position. Australia has to vaguely stick to the Western-centred values and systems between the self-centred US and the more open and globalized China and this does not fully match the regional development and Australia’s national interests. Therefore，the time for Australia to benefit from its strategic hesitation in choosing between the US and China has been over，making Australia more difficult in balancing the relations and frequently in a situation of gains and losses at the same time and even sometimes offending both the US and China. Domestic economy and politics in Australia will be the focus of attention until the next federal election in 2019.