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I don't know the differences between the Volvos in Australia and here in the US but I have owned both an '80 and an '88. Based on these cars, I think the '88 is the better car although the '80 was pretty solid. Here's how I would see it:
1. The '88 is supposed to be past the years when the harnesses went bad. My '88 has no harness decay at all. My '84 and '86 have the rot.
2. My '88 has the 5-speed manual. It is smooth and not prone to OD problems since there are no electrics to control the OD. It has a reputation for being not as strong as the M46. Difeerent BB folks have blamed either the synchros (softer) or the upper bearings (too high to have the oil reach the bearings). I drained my M47 and overfilled with Redline MTL. By tipping the car up on the left side, I was able to get about .5 quart more oil in to get oil up to that upper bearing. The MTL oil is also supposed to be very good for the synchros. The shift gates on the M47 are not as precise as on my M46. I have an '86 with the M46+OD and like it as much as the M47. You'll find the 5th gear makes cruising quieter and you should getter better mileage. Of course, in the hilss you'd want to stay in 4th.
3. I can't compare to the carbureted engine but I've found the LH system to be reliable. Trouble points are the fuel pump relay and corrosion on the fuses. My '80 gave me fits until I learned about this. I did preventative maintenance on the '86 and '88 and have not had any fuel system problems.
4. The '88 is supposed to be well galvanized, unlike the '80. I have had no rust on any of my Volvos because we live in Oregon where salt is not used on the roads in the winter. My cars sit out in the rain so leaks can be a problem.
5. One big difference between my '88 and all my other Volvos is the better sound control. It is definitely quieter. The B230 engine has shorter piston skirts and this engine is more prone to piston slap when it is cold. This is not a serious problem and the sound goes away when the car warms up.
You should get the specs on horsepower between the two models. I think that I read that the Canadian carb engine had more power than the US fuel injected version. I don't know about the Astralian specs. I'm sure there will be others jumping in with more info.
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