Originally elected as a Labor member and serving as Deputy Premier in the Beattie Government, Elder resigned from the party on 30 November 2000.
After the resignation of the Goss government and the ALP moving to the opposition benches, he became deputy opposition leader, holding the portfolio of Transport, Youth, Sport and Recreation; his responsibilities were changed to Business, Industry and Transport in December 1996.
Following the election of the Beattie government in 1998 he became Deputy Premier and Minister for State Development and Trade.
He resigned in November 2000 to contest allegations made by the Shepherdson Inquiry from which no charges resulted.