The incumbent Liberal–Country coalition government, led by Prime Minister John Gorton, won the election with a severely diminished majority over the opposition Labor Party, led by Gough Whitlam, despite losing the two-party-preferred vote.

Under his leadership, Whitlam had also attracted back many Catholic voters who had previously dumped Labor due to its infighting and factionalism.

In addition, although the Coalition had won the biggest majority government in Australian history in 1966, it was increasingly seen as becoming tired and unfocused after 20 years in power.

Despite a Coalition campaign depicting Labor as a party dominated and controlled by union bosses, the result was very close.

It also won a bare majority of the two-party-preferred vote, winning 50.2 percent to the Coalition's 49.8 percent—a 7.1-point swing from 1966, the largest not to have resulted in a change of government.