So is this good or bad for Australia?
good.
Rudd is less extremist than Gillard, but is still a socialist. He’d be the lesser of two evils except that he is likely to do better at the election due before the end of the year than Gillard would have, which means the conservative Coalition will be less successful. We would still expect to win with a decent majority unless something went seriously wrong, but winning the House 110-40 would have been better than 80-70, or 90-60 - and we are much less likely to take control of our Senate.