[2] McGauran was appointed Minister for Science and Technology in the Howard government in 1996, however, on 26 September 1997, he was forced to resign his position due to ministerial impropriety in relation to the "Travel Rorts" affair.
In July 2005 he was promoted to Cabinet and became Minister for Agriculture, Fisheries and Forestry, a position he held until 3 December 2007, the Howard Government having been defeated by the Australian Labor Party under Kevin Rudd at the 24 November election.
After the resignation of Nationals leader Mark Vaile, McGauran was expected to seek the leadership; however he dropped out of the race, stating that it was time for younger members to contribute to the party, and that he looked forward to using his experience to help them.
[3] On 4 April 2008, McGauran announced he would shortly be resigning from parliament, citing plans to pursue interests in the thoroughbred racing industry.
After announcing his resignation, he revealed events that occurred in 1996, where he was physically assaulted by Alphonse Gangitano, an underworld figure who was later murdered.