Australia’s governing institutions are defined as liberal democratic - liberal being the operative word. Liberalism champions morally progressive and enlightened ideals such as liberty, equality, and fraternity. But for whom? The theory and application of early to modern liberalism is marred with moral exclusion and exceptions. As C.L.R. James said, “In politics all abstract terms conceal treachery.” It appears liberalism’s forceful resurgence in 1970s, and continued utilisation, calls for a critical re-examination of its past and present forms. By examining liberalism’s entanglement with capitalism in Australia, it will be demonstrated how social and economic inequities are exploited, revealing how liberalism is ambivalent to its own fundamental promise of equality. History demonstrates, however, that the democratic principal of participation can be a redeeming quality for liberal democracy. Thus allowing, for the time being, a mechanism to mitigate the harsh essence of modern liberal capitalism, until a workable alternative is achieved.