Blaxland had been held since 1969 by Paul Keating, who had been Treasurer under Bob Hawke from 1983, until he defeated Hawke in a leadership challenge in December 1991, becoming Prime Minister of Australia. Keating went on to defeat John Hewson at the 1993 election, but three years later the ALP was defeated in a landslide victory by a resurgent Coalition led by John Howard at the 1996 election on 2 March. Following the party's election loss, Keating immediately resigned as party leader, and several weeks later, resigned from the Parliament.[1]
The Australian Labor Party retained the seat with an increased majority, with Michael Hatton as their candidate. The Liberal Party of Australia declined to run a candidate, and this saw a rise in the vote for two minor anti-immigration parties: Australians Against Further Immigration and Reclaim Australia: Reduce Immigration, which came second and third in the popular vote. On a two-party preferred basis, RARI gained their best ever result in an election, gaining over 30% of the vote on preferences.