Question

What was the main reason why Australia's economy collapsed right before the Great Depression began?

Answer 1

The government made poor decisions.

Answer 2

There were many events that collaborated with the collapse of their economy. Among them we can mention:

Post War results, wartime inflation, the reduced demand for imports from Australia as well as the higher unemployment rate, contributed to the collapse.

Also, we can mention the change in the Australian currency, and its relation to the Pound Sterling and Gold, which resulted in a fall in export demand, since the prices were less competitive in the market.