If we are a high beta economy we certainly came through the Asian financial crisis, the dotcom bust in the US and the 9/11 downturn very well (this was PRE the resources boom by the way).
As for high debt levels and current account deficits, yes this is a big problem endemic in the Western world and I am not sure how much responsibility governments have to take for individuals and businesses spending decisions.
Costello and Howard inherited enormous debt and paid it off and brought large surpluses. They should have spent more on infrastructure than family bribes but they did a pretty good job, 12 years of stable and solid economic growth.
