Former prime minister John Howard "trembles" at the thought of Donald Trump becoming the next US president.
But if Mr Trump becomes the Republican candidate he expects him to lose to Democrat Hillary Clinton.
"I'm conflicted by that because my natural inclination would be to see a Republican in the White House, but I tremble at the thought of Trump being president. There's an instability about him that bothers me," he told Sky News on Sunday.
Howard says Australia can work closely with both the US and China.
"You don't have to choose between America and China, that's ridiculous," he told Sky News on Sunday.
However, he said the relationship with the US will always be more intimate because the two countries share common values which bonds nations more tightly than trade.
Mr Howard believes industrial relations have returned to the 1980s, saying there should be individual contracts.
"The idea you can't make a contract directly without the injection of a union is absurd," he told Sky News on Sunday.
He also criticised unfair dismissal laws, saying it's tough on small firms to have to pay "go-away money" for troublesome employees.
When it comes to gay marriage, Mr Howard preferred a free vote in parliament on the issue.
"I believe in representative democracy," he said.
But he said now that a plebiscite has been promised, the government must honour that.
