Despite winning almost 51 percent of the two-party-preferred vote and regaining much of what it had lost in its severe defeat of two years earlier, Labor fell short of forming government. The government was re-elected with 49.02% of the two-party-preferred vote, compared to 50.98% for the Australian Labor Party, the largest difference of six election results where the winner did not gain a two-party preferred majority, since 2PP results first estimated from 1937.
The election on 3 October 1998 was held six months earlier than required by the Constitution. Prime Minister John Howard made the announcement following the launch of the coalition's Goods and Services Tax (GST) policy launch and a five-week advertising campaign. The ensuing election was almost entirely dominated by the proposed 10% GST and proposed income tax cuts. This election was not the first to be centred on a GST the 1993 election saw the Keating Labor government re-elected after a proposal by then Opposition leader John Hewson to introduce a 15% GST.[1]
In reaction to One Nation's policies, the other significant parties all agreed to preference against One Nation. One Nation lost its lone house seat when founder and leader Pauline Hanson lost on preferences to Liberal candidate Cameron Thompson in the Queensland electorate of Blair. In Queensland, One Nation polled 14.83% of the Senate vote, sufficient to elect one senator without the need for preferences.[2]
The seat initially went to Heather Hill, but she was subsequently disqualified under Section 44 of the Constitution, and replaced by Len Harris.
On election night of 3 October, the exit poll showed Labor on a 53 percent two-party-preferred vote. Labor made the single biggest gain by an Opposition party following an election defeat; the Coalition's majority was cut from 40 to 12. It was only when the first returns trickled in from Western Australia that the Coalition was assured of another term. The swing across all states would have normally been sufficient for a change of government, but the uneven nature of the swing left Kim Beazley eight seats short of becoming prime minister.
The uneven nature of the swing saw Labor getting huge swings in seats that they held prior to the election but not enough in seats needed to gain government.[4]
^Pauline Hanson has been counted as an independent for the 1996 election. She had been disendorsed as the Liberal candidate and ran as an independent, but she remained a Liberal on the ballot paper.
^Tony Smith contested his seat as an independent. The figures shown are against Labor.
^Paul Zammit contested his seat as an independent. The figures shown are against Liberal.
^At the 1996 election Pauline Hanson had been disendorsed as the Liberal candidate and ran as an independent, but she remained a Liberal on the ballot paper. She created the One Nation Party and contested the seat of Blair in this election after a redistribution, losing to Liberal Cameron Thompson. The figures shown are a two-party-preferred basis between Labor and Liberal.
^Newman, G; Kopras, A (4 November 1996). "Federal Elections 1996"(PDF). Background Paper 6 1996-97. Parliamentary Research Service. ISSN1037-2938. Retrieved 10 January 2022.