So, has public sentiment veered as hard to the left as this would indicate, or is this a short term peculiarity of the leadership as currently aligned?
How likely is this to be “corrected” via elections, in other words?
It's actually the Labor right that has put her into office. They'd rather stay in office with a hard left leader, than lose government with one from their own side of the party. She was the only viable short term replacement for Rudd, and they needed to replace him.
She is personally very popular, but that's partly because most Australians don't realise how far to the left she is. As Deputy Prime Minister, she toed Rudd's line, and her main ministerial responsibilities were in education where Australian's tend to tolerate left wing views more (Australian voters typically want the right in charge of defence, foreign affairs, and the economy, the left in charge of education, health, and social services.) As Prime Minister, her own views are going to be more prominent, and I think voters will be turned off by them - the question is will it happen before the election. She could call an election today, for about a month from now - if she did that, she'd win. The longer she stays in office, the less likely I think it is. There has to be an election by early next year.
I don't think there is anything like conservatism in Australia at the moment.
The conservatives (called the Liberal Party) are just as bad they just proposed a Parental Leave policy of up to $75,000 (about $60,000 US) for 6 mths leave from work after having a baby, paid for by a 1.7% corporate tax on big businesses, redistributed by the government to individuals based on their earnings.
Currently Australia doesn't have a national parental scheme, so this is a BIG step. And at $75,000 for 6mths (ave earnings in Australia would be $50,000 or so) ... a huge middle class welfare entitlement. Australia has been doing exceedingly well economically due a long period of structural reform in the late '80s and in the 90s, plus a mining boom, and all political parties are now in a race to the bottom in promising new or extended entitlements, more and more regulations and bigger government.
Whether it is Gillard now in place of Rudd, or Abbott as the conservative leader on the other in the coming election, it won't change the current trajectory of Australia.