On 8 March 1971, Defence Minister Malcolm Fraser resigned from cabinet, supposedly over Gorton's failure to support him in a dispute with Chief of the General Staff Thomas Daly.

The following day, Fraser gave a statement to the House of Representatives in which he excoriated Gorton and called him "not fit to hold the great office of prime minister".

Fraser's actions brought to a head tensions over Gorton's leadership style, particularly what his opponents viewed as his lack of consultation with cabinet.

McMahon – who had been deputy leader of the Liberal Party since 1966 – defeated Snedden with what The Canberra Times called "a comparatively small majority".

Somewhat unexpectedly, Gorton put himself forward as a candidate and was elected, defeating Malcolm Fraser and backbencher David Fairbairn.