The incumbent Liberal-Country Party coalition had lost its longtime leader, Sir Robert Askin, at the end of 1974.

When former Minister Steve Mauger resigned on 27 January 1976, sparking a by-election in his seat of Monaro in May, and early polls had indicated a large swing to Labor, Willis announced an early election on 1 May, thereby cancelling the by-election in the hope of preventing a larger move of voters against the government.

[2] Wran successfully emerged from the shadow of the defeated Whitlam Labor government at a federal level.

The state party had undergone a long process of renewal, and emerged with strong moderate credentials.

Wran's campaign slogan, "Let's put the state in better shape," delivered by the leader and key spokesmen Peter Cox and Syd Einfeld, resonated with voters.