Despite a successful budget reply and the controversy surrounding Howard-appointed Governor-General Peter Hollingworth, Crean had a low popularity rating throughout 2003.

On 27 November 2003, a section of Crean's senior colleagues informed him that he had lost support and should step down as leader.

The following individuals ruled themselves out as candidates or were the subject of media speculation but did not stand: The ballot was held on Tuesday 2 December in which Latham defeated Beazley by a margin of two votes (47-45).

Latham stayed on for a few months as leader until January 2005 when he stood down citing ill health.

Beazley then returned to the leadership unopposed and remained leader until December 2006 when he was ousted by Kevin Rudd.