In other news, it’s all happening in Victoria:

• Peter Costello’s surprise announcement that he will not contest the next election has raised the flag on another epic Victorian Liberal preselection stoush in his Melbourne seat of Higgins, which housed successive Liberal prime ministers in Harold Holt and John Gorton. Furthermore, Costello has raised the possibility of an early departure and a by-election, “if it’s in the party’s interest”. Immediately prior to Costello’s announcement, Institute of Public Affairs executive director John Roskam signalled his intention to run if Costello stood aside, after earlier testing the waters in Kooyong (see below). However, Peter van Onselen in The Australian reports that Costello has resolved to oppose Roskam due to equivocal comments he made to David Penberthy of The Punch about Costello’s future value in politics. Van Onselen further reports widespread displeasure at this and other remarks seen to be in breach of Liberal rules that preselection aspirations are not to be discussed with the media. Costello reportedly wishes for the seat to go to a former staffer, Kelly O’Dwyer. It had earlier been reported that O’Dwyer might depose incumbent Ted Baillieu loyalist Andrew McIntosh in the state seat of Kew. The other big name in the Higgins mix is Mal Brough, who has moved to Melbourne and is said to be hopeful of a return to politics that doesn’t involve further dirtying his hands in the morass of the Queensland Liberal National Party. However, Phillip Coorey of the Sydney Morning Herald reports party sources say he has “no chance”. Also mentioned are former state party director Julian Sheezel, who was said to be backed by Costello but opposed by Michael Kroger when talk of Costello’s departure was in the air after the election, Jason Aldworth, a former banking colleague of Michael Kroger and more recently a consultant for Crosby Textor; and, intriguingly, Tom Elliott, hedge fund manager and son of John, who memorably sought to depose Roger Shipton as member for this very seat in pursuit of his prime ministerial ambitions.

• Merchant banker Josh Frydenberg has won the hotly contested preselection to succeed Petro Georgiou as the Liberal candidate for Kooyong. Andrew Landeryou at VexNews reports that Frydenberg won the second round ballot over industrial relations lawyer John Pesutto by 283 votes to 239 after all other contenders were excluded in the first round. The result is a defeat for Ted Baillieu, whose power base had pursued various stratagems designed to thwart Frydenberg, the preferred candidate of the rival Kroger faction.

• The ALP national executive’s role in Victorian state preselections has been further expanded following John Brumby’s decision to refer to the body all state upper house preselections for next year’s election. Labor insiders quoted by David Rood of The Age relate that the decision will “all but end” the career of Theo Theophanous, who faces a vigorously contested rape charge and was recently among those named adversely in the state Ombudsman’s report into Brimbank City Council. This week the national executive acted as expected in relation to a number of lower house preselections referred to it in the wake of the latter imbroglio, selecting former Trades Hall Council deputy secretary (and wife of New South Wales Senator Steve Hutchins) Natalie Sykes-Hutchins to replace George Seitz in Keilor and confirming incumbents Telmo Languiller, Rob Hulls, Marsha Thomson and Marlene Kairouz in Derrimut, Niddrie, Footscray and Kororoit. It has also been confirmed that Victorian Planning Minister Justin Madden will seek to move to the lower house by nominating for preselection in Essendon, to be vacated by the retiring Judy Maddigan. In his absence, the national executive has chosen incumbents Martin Pakula, Khalil Eideh and Bob Smith to head the ticket in Western Metropolitan (Smith currently represents South-Eastern Metropolitan).

• Helen Shardey, Victorian Shadow Health Minister and member for Caulfield, has indicated she will stand down at the next election. It had been reported she faced a preselection challenge from David Southwick, previously unsuccessful in the federal seat of Melbourne Ports in 2004 and for the state upper house Southern Metropolitan in 2006.

• Andrew Landeryou at VexNews reports that former Liberal MP Phil Barresi, whom he describes as a “factionally unenthusiastic Krogerite”, has been given the green light to attempt to recover the seat of Deakin which he held from 1996 until his defeat in 2007. Barresi reportedly won on the first round over eccentric perennial Ken Aldred, who was dumped in favour of Barresi in 1996 after peddling weird conspiracy theories, and one Deanne Rhyll. Perhaps Barresi is encouraged by the precedent of 1984, when the Liberals unexpectedly recovered the seat (with some help from a redistribution) after losing it when the Hawke government was elected in 1983.

Elsewhere:

• Glenn Milne in The Australian reports on the Labor succession in the federal seat of Macquarie, which will be vacated at the next election by Bob Debus. As Milne tells it, Debus or his supporters put it about that his recent decision to withdraw from the ministry and bow out at the next election, which helped the Prime Minister no end as he sought to construct a new cabinet in the wake of Joel Fitzgibbon’s resignation, was conditional upon Debus being given the right to anoint his own successor. This was hotly disputed by Right powerbrokers who are bitterly opposed to Debus’s objective of freezing out industrial barrister Adam Searle, a Left faction colleague but personal rival.

• Two new goodies from Antony Green. An extensive paper for the New South Wales Parliamentary Library provides all manner of detail on the state’s Legislative Council election in 2007, while an accompanying blog post scrutinises the performance of the optional preferential above-the-line voting system introduced after the 1999 election produced a tablecloth-sized ballot paper and elected candidates from groupings that would be flattered by the “micro-party” designation. He further discusses the potential for such a system to resolve the issues which saw Steve Fielding elected to the Senate in 2004. For the more casual election enthusiast, a new 2010federal election calculator allows you set the two-party result to taste to find out the seat outcome in the event of a uniform swing. It turns out a 50-50 result would give the Coalition exactly half the seats and presumably allow it to govern with support of the three independents. Labor loses its majority at 50.8 per cent.

• Queensland independent MP Peter Wellington has introduced a private member’s bill providing for fixed three-year terms, with an escape clause if a new government cannot be formed in the wake of no-confidence motion and a provision allowing for a five-week postponement if there is a clash with a federal election or a “widespread natural disaster”. The major parties both support fixed four-year terms, which unlike Wellington’s proposal would require a referendum. Negotiations for such a referendum broke down last year when then Opposition Leader Lawrence Springborg insisted on further unrelated reforms, but his successor John-Paul Langbroek has foreshadowed a more “flexible” approach in future discussions with the government.

• Christian Kerr of The Australian evaluates the Australian political blogosphere.

UPDATE: Thanks to Rebecca in comments for bringing my attention to the fact that Allison Ritchie, Labor member for the Tasmanian Legislative Council district of Pembroke, yesterday announced she would quit parliament after enduring a storm of controversy over her appointment of family members on her staff. This will presumably result in a by-election shortly in Pembroke, where Ritchie defeated an independent incumbent in 2001 and won re-election in 2007. The Electoral Act allows the government enormous latitude on the timing of such a by-election, so I’ll hold off on giving it its own post until its intentions become clearer. Ritchie claims to have been the victim of a plot from within her own party, which presumably explains why she has decided to go now rather than wait for the more convenient juncture of early next year, when a by-election could be held with the state election in March or the annual periodical upper house elections in May.

• The Launceston Examiner reports that Brigadier Andrew Nikolic, veteran of numerous overseas postings and until recently the Australian Defence Force’s director-general of public affairs, has “confirmed that he is interested” in Liberal preselection for the federal seat of Bass. Also said to have his eye on the preselection is Senator Guy Barnett, who will otherwise have to settle for the slighly less appealing prospect of number three on the Liberal ticket.

• Michelle Grattan reports on a “glowing reference” for Kooyong preselection aspirant Josh Frydenberg from John Howard. Another of Frydenberg’s backers is Andrew Peacock. His principal rival, industrial relations lawyer John Pesutto, is supported by Institute of Public Affairs executive director John Roskam, who was himself sniffing the breeze before deciding not to proceed. Former Liberal president and Fraser government minister Tony Staley has given his seal of approval to Peter Jonson, a 62-year-old former Reserve Bank official known to the web at large as Henry Thornton.

• The Townsville Bulletin reports there are rumours that prodigious McDonald’s franchiser George Colbran again hopes to run for Labor in Herbert, where he narrowly failed to unseat Peter Lindsay in 2007. Colbran reportedly says he “won’t commit either way”.

• David Rood of The Age reports that John Brumby has “cleared the way” for Keilor MP George Seitz to be dumped at the next election, amid the fallout from the Ombudsman’s recent report into Brimbank City Council. The party’s administrative committee will decide this evening whether to take preselections for western suburbs seats out of the hands of local branches, in which Seitz and others remain powerful. Also affected will be Kororoit MP Marlene Kairouz, whose preselection ahead of last year’s by-election formed the backdrop of much of the shenanigans investigated by the Ombudsman, and Derrimut MP Telmo Languiller. Labor sources quoted in the article wonder why both Languiller and Western Metropolitan MLC Theo Theophanous aren’t equally being targeted along with Seitz, so it evidently should not be taken for granted that either Languiller or Kairouz are endangered.

• Taking his cue from Manmohan Singh’s assumption of the Indian prime ministership from the upper house, Malcolm Mackerras argues for an end to the convention that Australia’s party leaders must sit in the lower house, which he relates to the anachronistic presumption that it is the more democratic chamber.

• Final score from the Fremantle by-election: Carles 10,664, Tagliaferri 9,100. Margin: 3.96 per cent. I expected Labor would rein it in a little on late counting, but no.

• With the whiff of a dying government in the air, talk of electoral reform is very much in vogue in London this season, just as was when the scandal-ridden Major government was breathing its last. Conservative leader David Cameron opposes proportional representation but promises to “look seriously” at fixed terms. Health Secretary Alan Johnson – “still the favourite to lead Labour if Gordon Brown is removed from the top job“ – has suggested the government at last look seriously at the “Alternative Vote Plus” model which has been floating around since the 1998 report of the Jenkins commission, which was set up when Tony Blair came to power. It proposes a slightly watered down version of German/NZ style MMP, combining constituency members with party list members to produce a proportional result. Unlike Germany and NZ however, there would be a cap on the number of party list members which might make results less than fully proportional. The “Alternative Vote” part of the title refers to Australian-style preferential voting for the constituency seats, which the Jenkins commission appeared to be taken with as it had just helped defeat Pauline Hanson. From the Jenkins commission report, a “note of reservation by Lord Alexander”:

My colleagues also think that AV will contribute to a less confrontational style of politics because candidates will be inhibited from attacking rivals too strongly as they wish to gain their second votes. I do not see it as particularly desirable that candidates from different parties, who are different precisely because they do not agree on all issues, should be pulling their punches in order to seek approval from voters who support other parties. In any event, from my observation of Australia, which is the only single large country to use AV, their politicians tend to be, if anything, more blunt and outspoken than our own.

Elsewhere:

• Tune in for live coverage tomorrow night as voters in three of Tasmania’s 15 Legislative Council districts go to the polls. Independent Ivan Dean, who was approached by John Howard to run in Bass at the 2004 federal election, faces a strong challenge from independent competitors in Windermere, which covers outer Launceston and the eastern side of the Tamar Valley. The retirement of independent Norma Jamieson has produced a tight four-horse race in the Devonport seat of Mersey, the field including Jamieson’s daughter Carolynn. Bartlett government Treasurer Michael Aird is unlikely to be troubled in his bid to keep Derwent (outer Hobart and Derwent Valley) as one of four upper house seats held by Labor. In the regrettably unlikely event that you wish to discuss this, please do so on the dedicated thread. Further reading from Peter Tucker at Tasmanian Politics. Further coverage tomorrow from Antony Green.

• Gary Clark, husband of former MP Jackie Kelly, has been found guilty for his role in the Lindsay pamphlet scandal. This was for the benign-sounding charge of “distributing unauthorised electoral material”, which carries a fine of $750. Former Liberal powerbroker Jeff Egan was acquitted, the court accepting his explanation that he was not aware of the content of the pamphlets. Not content with that, Egan has launched a private prosecution (presumably because his complaints have failed to interest the authorities) for assault against the Labor “possé” who caught the Liberal trio in their act, which includes Senator Steve Hutchins.

• Michelle Grattan of The Age reports that Josh Freydenberg has provided a formidable pair of referees in his application for the Liberals’ Kooyong preselection: John Howard and Andrew Peacock (the latter of whom held the seat from 1966 to 1994, in between Bob Menzies and Petro Georgiou).

• The Warrnambool Standard reports that Sarah Henderson, former host of The 7:30 Report and daughter of former state MP Ann Henderson, has entered the crowded field for the preselection in Corangamite. Others mentioned include former Kennett government minister Ian Smith; Graham Harris, head of the Liberals’ Corangamite electorate council; Victorian Farmers Federation president Simon Ramsay; “Internet expert and former Howard government adviser” Rod Nockles; Simon Price, unsuccessful Colac Otway Shire Council candidate and former electorate officer to Stewart McArthur; and Michael King, “Geelong businessman and owner of Kings Australia funeral services”.

• Peter Brent of Mumble comments on the audacity of Liberal Senator Michael Ronaldson expressing concern about the electoral roll in an excellent piece for Inside Story.

• After being reduced to the deadly third position on the Liberal ticket, conservative Tasmanian Senator Guy Barnett reportedly has his eyes on Bass, which Labor’s Jodie Campbell won from Michael Ferguson in 2007.

• If you thought Possum’s booth maps was dope, wait till you see Nathan Lambert’s Google Earth files.

• The Australian’s Michael Owen reports South Australian Labor is finalising its federal preselections, which “senior factional figures” link to a potential early election. Mia Handshin is keen to run again, either in a second tilt at Sturt or where Nicole Cornes failed in Boothby. Cornes herself has found an interesting new line of work as an industrial officer for the Shop Distributive and Allied Employees Association, but is “unlikely to win preselection”. A “senior ALP figure” nonetheless claims she is a genuine future prospect. Owen also reckons Labor Senator Dana Wortley faces electoral oblivion through “moves to relegate her to an unwinnable third spot”, although it was from that unwinnable position that she actually won her seat in 2004.

• Institute of Public Affairs director John Roskam has withdrawn from the contest to succeed Petrio Georgiou as Liberal candidate for Kooyong. He has thrown his support behind industrial relations lawyer John Pesutto, who looms as a threat to merchant banker Josh Frydenberg’s long-held designs on the seat. Rick Wallace of The Australian reports Pesutto also has the support of Ted Baillieu, who angered the Frydenberg camp by attending a function they “claim was to support Mr Pesutto”. Wallace also notes the June preselection will be “one of the first carried out under the Liberal Party’s new constitution, which empowers all eligible members within a seat to vote instead of only specially chosen delegates”. Andrew Landeryou at VexNews is told that “many of them … will be swinging votes with a history of supporting Baillieu/Petro or at least having a significant amount of affection for them or an in-built objection to the recruiting enthusiasms of Joshua”.

• Another interesting preselection for the Victorian Liberals looms in the eastern suburbs seat of Deakin, where two former members are hoping to make a comeback. One is Phil Barresi, who lost the seat to Labor’s Mike Symon in 2007. The other is Ken Aldred, whose eccentric reign extended from 1990 until his preselection defeat by Barresi in 1996. Aldred won a preselection ballot in Holt ahead of the 2007 election, but it was overturned by wiser heads in the party. Rounding out the field of known contenders is Deanna Ryall, a “local businesswoman”. Labor holds the seat with a margin of 1.4 per cent.

• New Queensland Opposition Leader John-Paul Langbroek foreshadows a more “flexible” approach than his predecessor in negotiating fixed four-year terms, improving the prospects for a referendum on the matter during the current term. Langbroek says it is not a priority, but Anna Bligh has apparently put the matter “on the agenda”. A referendum in 1991 for unfixed four-year terms was defeated with a 51.2 per cent no vote.

• Antony Green on the slow death of the election night tally room:

The next South Australian election will be the first conducted without a tallyroom. Both Victoria and NSW have also decided not to hold tallyroms at state elections due in November 2010 and March 2011. These state decisions may yet play a part in deciding whether free to air broadcasters attend the next Federal tallyroom. There were serious noise problems in the tallyroom in 2007, Sky News already bases its coverage from studio, and hosting from a studio would save the ABC and other free-to-air broadcasters considerable amounts of money and allow greater use of studio technology.

• I am maintaining elsewhere progressively updated posts on two looming electoral events: the May 16 Fremantle by-election and May 2 Tasmanian upper house elections.

• 62 per cent are “concerned” about job security over the coming year, although 60 per cent are “confident” Australia can withstand the crisis.

• The opposition’s approve-disapprove split on handling of the crisis has widened from 31-35 to 35-44, while the government’s is little changed.

• Labor is more trusted to handle the crisis than the Coalition by 55-25.

• A somewhat unwieldy question about which leader’s approach to stimulus is preferable has Rudd leading Turnbull 51-33.

• Opinion is also gauged on five individual aspects of the package, with free ceiling insulation rated significantly lower than the rest.

• Perhaps most importantly, Peter Costello outscores Malcolm Turnbull in a head-to-head preferred Liberal leader contest 37-26.

What’s more:

• Last weekend’s Sunday Telegraph reported that Malcolm Turnbull is supporting preselection moves against former NSW Opposition Leader Peter Debnam in the blue-ribbon Vaucluse, which is wholly contained within Turnbull’s federal seat of Wentworth. Those named as possible successors are “restaurateur Peter Doyle, barrister Mark Speakman, UNSW Deputy Chancellor Gabrielle Upton, barrister Arthur Moses and former Optus spokesman Paul Fletcher”. Debnam quit shadow cabinet last May in protest against his party’s support for the government’s attempt at electricity privatisation, and was left out in December’s reshuffle despite reportedly angling for the Shadow Treasurer position. Also rated as a possible starter is Joe Hockey, who might have other ideas now he’s Shadow Treasurer. Alex Mitchell writes in Crikey that Hockey might also be keeping an eye on Jillian Skinner’s seat of North Shore, and muses that Tony Abbott might also consider the state premiership a more achievable objective than a return to government federally.

• Former Howard government minister Richard Alston has nominated for a Liberal federal electoral conference position, which is reportedly a gambit in the keenly fought contest to replace retiring Petro Georgiou in the blue-ribbon Melbourne seat of Kooyong. Described by The Age as a “patron” of long-standing hopeful Josh Frydenberg, Alston will attempt to gain the position at the expense of incumbent Paula Davey, who is associated with faction of Opposition Leader Ted Baillieu – which would prefer that the seat go to Institute of Public Affairs director John Roskam.

• Yesterday’s Sunday Times reported that long-serving Fremantle mayor Peter Tagliaferri has been sounded out by Labor as a possible successor to Jim McGinty as state member for Fremantle. The report raised the prospect of McGinty going sooner rather than later, thereby initiating what could prove a very interesting by-election in the Poll Bludger’s home electorate. While Fremantle has been in Labor hands since 1924, McGinty received an early shock on election night when it appeared Greens candidate Adele Carles might overtake the Liberals and possibly win the seat on their preferences. Carles was ultimately excluded at the second last count with 28.6 per cent of the vote to the Liberal candidate’s 32.1 per cent.

• Tasmanian Premier David Bartlett rates himself “extremely pleased” that Winnaleah-based school principal Brian Wightman will seek Labor preselection for Bass at the March 2010 state election. Labor narrowly failed to win a third seat in Bass at the 2006 election, being pipped at the post by the Greens for a result of two Labor, two Liberal and one Greens. The likelihood of a swing against Labor next time means Labor is all but certain to again win two seats: one seems certain to stay with former federal MP Michelle O’Byrne, while the other is being vacated by retiring member Jim Cox. Also in the field will be CFMEU forests division secretary Scott McLean, reckoned by The Mercury to be a “star candidate” despite having been “condemned by many diehard members of the Labor Party in 2004 when he backed Liberal Prime Minister John Howard over Labor’s then-federal opposition leader Mark Latham”.

• The Hobart Mercury talks of upper house disquiet over Tasmanian government legislation for fixed terms, a draft of which is “currently out for consultation”. The government wants early elections for the House of Assembly to be allowed if the Legislative Council does so much as block a bill the Assembly has deemed to be “significant”. This sounds very much like South Australia’s “bill of special importance” exception, which I gather has never been invoked since it was introduced in 1985. Independent Council President Sue Smith says there is concern that “the provision could be used as a threat to pass controversial legislation or as an excuse to go to an early election”. Another exception, according to The Mercury, is that “the Lower House would also go to an election if the Upper House blocks supply of funds for a budget”. This seems to suggest that 1975-style supply obstruction would produce an instant election, though I suspect it’s not quite as simple as that. Nonetheless, Greens leader Nick McKim has “foreshadowed an amendment by which the Upper House would also have to go to the polls if it blocked budget supply”. This would be a significant development for a chamber that currently never dissolves, as its members rotate annually through a six-year cycle. Less contentiously, the legislation also allows for an early election if the lower house passes a no confidence motion.