It remains to be seen whether the new Coalition Government will revert to Australia's longstanding treaty practice prior to the 2011 'Gillard Government Trade Policy Statement'. That declared that Australia would not include investor-state arbitration (ISA) protections in future investment treaties - including investment chapters of Free Trade Agreements - even with developing countries.
The new Prime Minister, Tony Abbott, has declared that he is keen to conclude FTAs which Australia has long been negotiating with Japan, Korea and China respectively. The Gillard Government's stance on ISA adding to delays experienced in finalising these treaties - see comments, including some of my own in The Australian on 21 September 2013. It also complicates negotiations for regional agreements like the Trans-Pacific Partnership (TPP) agreement and the Regional Comprehensive Economic Partnership (RCEP).
The ISA system is far from perfect, but there are many ways for Australia to draft provisions in investment treaties - old and new - to balance public and private interests effectively. Examples that attract varying degrees of support, from experts in international investment law, are provided in my paper co-authored with Chris Campbell and Sophie Nappert, forthcoming in a special issue of the Transnational Dispute Management journal. It and some of my other recent papers relevant to this topic, uploaded on SSRN.com, are listed with their Abstracts below.