The first three federal elections produced hung parliaments, with the Protectionists, Free Traders, and Australian Labor Party (ALP) forming a series of minority governments.
Free Trade leader George Reid envisioned an anti-socialist alliance of liberals and conservatives, rebranding his party accordingly, and his views were eventually adopted by his Protectionist counterpart Deakin.
The Fusion was controversial, with some of Deakin's radical supporters regarding it as a betrayal and choosing to sit as independents or join the ALP.
The new party formed Australia's first federal majority government and allowed Deakin to return for a third term as prime minister.
However, it lost the 1910 election to the ALP in a landslide and had little electoral success thereafter, winning a majority in the House of Representatives only once and never in the Senate.
Following the ALP split over conscription in 1916, Deakin's successor Joseph Cook led the Liberals into an alliance with Prime Minister Billy Hughes' new National Labor Party.
Deakin attempted to form a national organisation under the name "Commonwealth Liberal Party", but it failed to spread beyond Victoria.
In each state various similar bodies were created to endorse candidates and provide campaign financing, while the party also enjoyed the support of pre-existing organisations like the Australian Women's National League.
This attempt struck a chord with politicians who were steeped in the Westminster tradition and regarded a two-party system as very much the norm.
However, only a year later, Cook deliberately introduced a bill abolishing preferential treatment for public-service union members.
Hughes would stay on as prime minister until the 1922 election where the new Country Party of Australia (later The Nationals) stripped the Nationalists of their majority, and demanded his resignation in exchange for confidence and supply.
[11] The inaugural address at the conference was given by the incumbent prime minister and parliamentary Liberal leader Joseph Cook.
It was formed at a meeting in Melbourne on 5 April 1909, with the aim "to organise the Liberal voters, both men and women, throughout Australia".
[19] His son-in-law Herbert Brookes was Deakin's "right-hand man",[20] serving as party treasurer and chief fundraiser, while Deakin's daughter Ivy Brookes was founder and secretary of the CLP women's section, intended to form a liberal counterpart to the more conservative Australian Women's National League.