The key to political survival is knowing when to hold 'em or fold 'em, or creating a distraction when needed. The Government tried all three last week, to varying degrees of success, writes Paula Matthewson.

Political longevity comes, in no small part, from a government's ability to survive its mistakes - the self-inflicted stumbles, dramas and crises that diminish it in the eyes of voters.

The key to survival is often a matter of knowing the right time to stick to one's guns and when to cut one's losses and move on.

The third approach is to create a diversion. A well-executed diversion can take the heat out of an issue by drawing the attention of the media and public away from the troublesome matter at hand. This creates space in which to find the necessary course corrections.

The trick of course is to know what is the right approach to take at any one time.

Over the past week the Abbott Government executed these tactics with varying degrees of success. In what is anticipated to be the first in a series of concessions over the coming months, the Prime Minister cut adrift the proposed amendments that would have watered down the Racial Discrimination Act.

The extent of the loss for supporters of free speech was writ large on the face of the Attorney-General, George Brandis, as he stood stonily beside the Prime Minister at the media conference announcing the backdown.

Both men knew this was undeniably a big win for the progressive side of politics, which had campaigned in concert with the representatives of ethnic communities for the retention of curbs on hate speech. Pairing the announcement with the declaration of new counter-terrorism measures was therefore meant to be a diversionary tactic to convince the media that the security changes were a bigger news story than the progressives' win on 18c.

This manoeuvre proved more distracting than likely expected when it transpired the new measures also included the mandatory retention of information on Australian citizens' telephone and internet use. Progressives who were one moment celebrating the overturn of the 18c changes, were then raging about the right to privacy and the presumption of innocence until proven guilty.

In effect Tony Abbott swapped one leftist soapbox for another, and while it's true the Coalition's core voter base enjoys seeing the Left prodded into outrage every now and then, they will have marked Abbott down on the anti-terrorist measures because of the associated "spine-weakening" on free speech.

So by the end of the past week, Abbott was getting no credit for taking the hard decision on 18c or protecting the nation with the new security measures. And following what looked very much like self-sabotage on Brandis's part when he botched the explanation of metadata retention during a media interview, there was a growing need to stem the flow of outrage exacerbated by the exceedingly poor marketing of the security initiative.

A Machiavellian might be forgiven for thinking it was at this point the Government decided it needed a diversion from its diversion. Indeed, can there be any other explanation for the Liberals' dour arch-conservative, Senator Eric Abetz, agreeing to appear on the commercial light-news program The Project on Thursday night?

Abetz's subsequent comments on the link between abortion and breast cancer provided just the circuit-breaker needed to reset the outrage machine on social media and provide a whole new story arc for its limpet media.

This theory is not so far-fetched if one considers the times when other members of the Liberals' extreme right have also seemingly been wheeled out to perform distraction duties. Senator Cory Bernardi's comments on same-sex marriage and bestiality, albeit in opposition, are a particular case in point.

The added benefit of extremists like Abetz and Bernardi taking the stage in this way is that their behaviour and views tend to normalise those of less extreme conservatives, thereby dragging the "centre" of politics even further to the right.

As the past week closed, it could be argued that Abetz's intervention had succeeded: it certainly seemed as if the mainstream media had moved on to other fare. And so as the new week begins, the polity awaits the arrival of the next bandwagon to clatter through the echo-chambers of Twitter.

What does seem clear is that the Prime Minister will have to cut his losses on a range of other measures if he is to get some semblance of the budget through the Senate. The time for stubbornness or diversion is well past.

This means finding ways to accommodate the crossbench's opposition to changes to payments for families, eligibility requirements for welfare recipients, the GP co-payment, and changes to higher education charges.

In reality, the best way to demonstrate his willingness to negotiate on the budget would be for Abbott to formally set aside or scrap his paid parental leave scheme. Having already justified his broken promise on the 18c changes as being in the national interest, this would be the logical next step.

Paula Matthewson is a freelance communications adviser and corporate writer. She was media advisor to John Howard in the early 1990s. She tweets and blogs as @Drag0nista. View her full profile here.