Newell was born in Sydney, received a Diploma of Applied Science from the Hawkesbury Agricultural College and a Diploma of Education from the Armidale College of Advanced Education, now part of the University of New England.
In 1990, Newell was preselected as the Australian Labor Party candidate for Richmond, a historically rural seat in northern New South Wales.
Newell was initially given little chance of winning, since he was running in what had historically been a strongly conservative seat.
It had been in the hands of the non-Labor parties since Federation, and the Nationals had held it without interruption since 1922 though their margin had been declining in recent years.
However, on the seventh count, anti-nuclear activist Helen Caldicott's preferences flowed overwhelmingly to Newell, allowing him to defeat Blunt and become the first Labor member ever to win Richmond.