The incumbent centre-right Liberal/National Coalition government led by Prime Minister John Howard of the Liberal Party and coalition partner Tim Fischer of the National Party defeated the centre-left Australian Labor Party opposition led by Opposition Leader Kim Beazley, despite losing the nationwide popular and two-party preferred vote.

Despite winning almost 51 percent of the two-party-preferred vote and regaining much of what it had lost in its severe defeat of two years earlier, Labor fell short of forming government.

[2] The seat initially went to Heather Hill, but she was subsequently disqualified under Section 44 of the Constitution, and replaced by Len Harris.

[3] On election night of 3 October, the exit poll showed Labor on a 53 percent two-party-preferred vote.

Labor made the single biggest gain by an Opposition party following an election defeat; the Coalition's majority was cut from 40 to 12.