She was appointed to the New South Wales Legislative Council filling a vacancy following the retirement of Ann Symonds in 1998.

Hence for the three-week period from 26 August to 17 September 2005, Tebbutt was in the unusual, though not unprecedented, position of being a Minister of the State, without being a member of parliament.

With no Liberal candidate contesting the election in this comfortably safe Labor seat, the ALP primary vote increased, though she suffered a 5.6% two-candidate preferred swing to the Greens.

[7][8] Tebbutt successfully held the seat of Marrickville at the 2007 election, but announced after it that she would not be a candidate for the new ministry and would return to the back bench so she could spend more time with her family.

[9] A meeting of the Left faction on 4 September 2008 saw her return to the front bench as she was elected as the Deputy Leader of the NSW Labor Party.

[13] The campaign was marked by anti-Zionist protests as four months earlier, Byrne and Marrickvile Council had controversially voted to boycott Israel.

[15] After retiring from politics, in 2015 she was appointed as Chief Executive Officer of Medical Deans Australia and New Zealand.

In 2000, Tebbutt married Anthony Albanese,[3] later the leader of the Australian Labor Party and 31st prime minister of Australia.