Backbencher and former treasurer Paul Keating defeated Prime Minister Bob Hawke, who had led Labor for eight and a half years.

[1] A re-energised Liberal opposition led by John Hewson, a qualified economist, gained ground in the opinion polls.

Hawke had alienated key NSW Right powerbroker Graham Richardson in late 1990 by denying him the transport and communications portfolio, causing Richardson to support Keating as a leadership alternative, before bluntly telling Hawke he no longer had the support of the Right.

By late 1991, Hawke's public support continued to decline as the Australian economy showed no signs of recovering from the recession and the opposition Liberals launched their Fightback!

[3] The final straw was when Hawke sacked Keating's successor as treasurer, John Kerin for his perceived communication weaknesses in early December.