Sir Robert Menzies had retired from politics in January; his successor, former treasurer Harold Holt, was stylish, debonair and popular with the electorate, contrasting sharply with the much rougher figure of Opposition Leader Arthur Calwell, who had already lost two elections.

It did not help that also held to the beliefs that had been central to the previous Labor Government of 1941–1949, many of which were seen as being long outdated in 1966; for example, he still defended the White Australia policy and nationalisation, and also strongly supported socialism.

These factors, along with a strong economy and initial enthusiasm for Australia's involvement in the Vietnam War, virtually guaranteed the Coalition another term.

It was later seen as the electoral high point of both Holt's prime ministership and the 23 years of continuous Coalition rule.

Calwell retired to the backbench a month after the crushing election loss, and was succeeded by his deputy, Gough Whitlam.