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Well, it wouldn't work in America. But I agree that low turnout is a problem, both in the US and here. I think there are more organic ways to achieve the goal than law making and policing.
Also, the idea of having compulsory voting and an unelected head of state in this country would make my head explode.
¡apesta!
works in 'straya
http://www.aec.gov.au/Voting/Compulsory_Voting.htm
i think this would only work if the act of voting was made far simpler than what it is at the moment.