Australian political tradition is often characterised in terms of utilitari
anism and pragmatic attitudes towards the role of the state. In this paper
I argue that to understand Australian political tradition one must also und
erstand the importance of idealist liberalism at the time of Australia's na
tion-building. In particular, I suggest that the central Australian politic
al institution of conciliation and arbitration embodied the philosophical c
ritique of contract and the concept of the ethical state articulated by lat
e nineteenth-century liberals from T.H. Green onwards. I discuss some of th
ose responsible for transmitting these ideas to Australia and their role as
practical reformers. In conclusion I argue that under the influence of Gre
en, liberalism evolved in ways more compatible with feminism that is often
acknowledged.