Despite factional struggles within Labor, the Tonkin Liberal government oversaw the economy suffer through the early 1980s recession.

After just one term, Bannon managed to return Labor to government at the 1982 election with a 5.9 percent two-party swing but only a one-seat majority.

While there had been a stream of social reform during Don Dunstan's 1970-79 premiership, Bannon's priorities were oriented in economics.

[2] Poker machines were introduced in South Australia, a decision Bannon would come to regret decades later.

[4] Other measures were introduced such as action to prevent destruction of vegetation and urban renewal programmes to invigorate some of the declining inner suburbs in Adelaide.

Bannon's government was easily re-elected at the 1985 election, achieving a 2.2 percent two-party swing towards them from the Liberal opposition and a four-seat majority.

Shortly thereafter, electoral legislation was passed with the objective that the party which receives over 50 percent of the statewide two-party vote at the forthcoming election should win the two-party vote in a majority of seats, through a compulsory strategic redrawing of electoral boundaries before each election, making South Australia the only state to do so.

Bad lending decisions made by the State Bank of South Australia's board and managing director Tim Marcus Clark were exposed.

[2] Upon resigning as head of government, he announced that he would not contest his seat of Ross Smith in the coming election.

Lynn Arnold replaced Bannon as Premier but was unable to stave off a landslide defeat at the 1993 election.

He later studied and obtained a Doctor of Philosophy degree in Australian political history at Flinders University, where he was a professor.