The by-election was triggered by the resignation of the sitting member, former Liberal Party of Australia leader Dr John Hewson on 28 February 1995.

John Hewson was elected as the member for Wentworth in 1987, in 1988 Opposition leader John Howard appointed him Shadow Finance Minister, in May 1989 Hewson became Shadow Treasurer after Andrew Peacock replaced Howard, after Peacock lost in the 1990 election, Hewson became the Leader of the Opposition defeating Peter Reith [1], the Coalition lost the 1993 federal election.

Hewson had pledged to resign if the Coalition lost the 1993 election, but did not do so, and despite retaining the leadership over John Howard and Bruce Reid his leadership was undermined over the next year by Alexander Downer, Peter Costello and Bronwyn Bishop.

[1] Eventually, Hewson called a leadership ballot in May 1994 which was won by Downer with Costello as his deputy.

In February 1995, Hewson resigned from Parliament after prior speculation he was to be subject to pre selection challenge.