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Gillard Faces Tax Fight With New South Wales as Labor Ousted

The Australian opposition’s victory in New South Wales state elections for the first time in 16 years may signal a growing backlash over Prime Minister Julia Gillard’s taxes on carbon emissions and mining profits.

The Liberal-National coalition and its leader in Australia’s most populous state, Barry O’Farrell, campaigned against the tax ahead of the March 26 ballot. Labor’s representation in the 93-member lower house of parliament fell to 18 seats from 50, it’s worst defeat in the state’s history.