Chris, the government was well aware of the mixed economy issues and the non mining sector for many years... and is why they attempted to bring in the RSPT. It was exactly to address that. perhaps they realisd too early and so the effort was not given enough respect.
However people have rejected tax reform very vocally so have made the decision to live with such consequences. This now means if you want work you have to re-skill and maybe move. Tax reform would be brilliant for this nation but they do not want it. Tax is toxic apparently so some sectors will pay instead as the cost will always be there somewhere.
Look here:
A council in north-western New South Wales has 30 positions vacant as it battles to compete with the high wages offered by the mining industry.
http://www.abc.net.au/news/2011-08-05/council-struggles-to-fill-30-vacancies/2825762/?site=westernplains§ion=news
Ireland newspaper.
Western Australia has enough well-paying job vacancies to employ a third of Ireland's 450,000 unemployed, according to the region's employment minister Peter Collier.
http://www.independent.ie/national-news/australia-targets-our-army-of-job-hunters-2823216.html
There is tons of work, just a huge shift where it is and what type of work it is. So the strength is there, just people need to be adaptable.
Sentiment will be more damaging than reality, in fact if we do sink I will blame it on sentiment entirely. We had massive floods, massive cyclones and we suffer a little slowdown. We have done very well considering but if your sales are down last week I would blame Abbot talking things down more than needed. Next week on fear of global markets but not for any real domestic reason, so again sentiment. Keep talking it down your wish may come true.
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