Australia enters 2013 reconsidering its place in a strategically shifting world. Issues close to home have stabilised and, increasingly, considerations further from Australia are being written off as a lost cause.

Australia's peacekeeping commitment to East Timor has ended, with that country now charting an independent and, for the medium future at least, stable course. East Timor's relations with its giant and once problematic neighbour, Indonesia, are now so positive that it has been mooted that East Timor's defence forces might start training with Indonesia's army.