In 1978 he received a Bachelor of Education from La Trobe University and returned to ABC News as editor, serving until 1982.
He received a Master of Business Administration from Melbourne University in 1983 and was appointed as a consultant to the Treasurer and executive director of the Committee of Enquiry into Victorian Workers' Compensation.
He then went to the backbench after he was unsuccessful in his attempt to wrest the ALP leadership from John Brumby, the sitting leader.
Despite being defeated by a wide margin it was believed that Baker had the numbers to beat Brumby thanks to a deal made by the Socialist Left and Labor Unity factions to install him as leader, a deal that was torn up when Brumby agreed to concessions made to the factions.
[2] He lost Labor preselection for Sunshine to Telmo Languiller in 1999 and ran as an independent, but he was defeated.