Growing up in working-class Bankstown, a suburb of Sydney, Keating left school at age 14. He became involved in trade union activity and labour politics and was elected in 1969 to the House of Representatives at age 25. Acquiring a reputation for both pointed political invective and party loyalty, he was chosen by Prime Minister Robert Hawke (Hawke, Robert) to be federal treasurer in 1983. Keating became a stellar performer, making his mark with a blend of earthy attacks on his opponents and high-level explanations and lectures on the more arcane aspects of economics.

In 1991, while Australia struggled with economic recession, Hawke became embroiled in a leadership battle with Keating for control of the Labor Party and the office of the prime minister. On Dec. 19, 1991, Hawke called for a party vote and lost by a small margin to Keating (56–51). As prime minister, Keating inaugurated financial programs aimed at national recovery. He was reelected prime minister in 1993 as the economy regained strength, but his government was defeated by a coalition of the Liberal Party (Liberal Party of Australia) and the National Party in the elections of March 2, 1996, ending 13 years of rule by the Labor Party. Keating became a successful business consultant after his political career.