Prime Minister John Gorton was re-elected as the party's leader, defeating challengers William McMahon and David Fairbairn.

The Liberal–Country coalition lost a combined 16 seats at the 1969 federal election, and the Labor Party (under Gough Whitlam) won the two-party-preferred vote.

On 2 November, National Development Minister David Fairbairn announced his intention to challenge Gorton for the leadership of the Liberal Party.

[2] Deputy Prime Minister John McEwen, the leader of the Country Party, announced that his party was willing to work with any of the three candidates; this lifted the veto he had applied to McMahon at the previous leadership ballot in January 1968.

With Speaker William Aston presiding, the 65 members of the Liberal partyroom took 49 minutes to elect a leader.