In February 1953, the ALP had been in power for 12 years and James McGirr, who had led the party to a near defeat in 1950, had lost the premiership to Joe Cahill 10 months earlier.

Cahill, by contrast, had won popular support as a vigorous and impressive minister who had resolved problems with New South Wales' electricity supply.

Labor's vote was resurgent in rural New South Wales where it won the seats of Armidale, Dubbo and Mudgee from the Country party.

John Seiffert, another rebel from 1949 and the member for Monaro, had been readmitted to the party in 1950 and retained the seat at this election, giving a further boost to Labor's numbers.

The Minister for Labour, Industry and Social Welfare, Frank Finnan was unseated when his electorate of Darlinghurst was abolished,[1] he lost a preselection contest for Concord,[3] and he failed in an attempt to win Albury.