2004 Australian federal election

States and Territories won by the Australian Labor Party and the Liberal/National Coalition. (Popular Vote)

Government (87)
Coalition
  Liberal (74)
  National (12)
  CLP (1)

Opposition (60)
  Labor (60)

Crossbench (3)
  Independent (3)

The disproportionality of the lower house in the 2004 election was 8.67 according to the Gallagher Index, mainly between the Liberal and Green Parties.

Independents: Peter Andren, Tony Windsor, Bob Katter

• The Nationals had candidates in 9 seats where three-cornered-contests existed, with 84.70% of preferences favouring the Liberal Party.
• The Greens contested all 150 electorates with preferences strongly favouring Labor (80.86%)
• Family First contested 109 electorates with preferences favouring the Liberal/National Coalition (66.57%)
• The Democrats contested 125 electorates with preferences slightly favouring Labor (58.91%)
• One Nation contested 77 electorates with preferences slightly favouring the Liberal/National Coalition (56.4%)

In the House of Representatives, the Coalition won eight seats from Labor: Bass (Tas), Bonner (Qld), Braddon (Tas), Greenway (NSW), Hasluck (WA), Kingston (SA), Stirling (WA) and Wakefield (SA). Labor won four seats from the Coalition: Adelaide (SA), Hindmarsh (SA), Parramatta (NSW) and Richmond (NSW). The Coalition thus had a net gain of four seats. The redistribution had also delivered them McMillan (Vic), formerly held by Christian Zahra of Labor and won by Liberal Russell Broadbent; and Bowman (Qld), formerly held by Labor's Con Sciacca and won by Liberal Andrew Laming. Labor, meanwhile, received the new seat of Bonner (Qld) and the redistributed Wakefield (SA), both of which were lost to the Liberal Party. The Labor Party regained the seat of Cunningham, which had been lost to the Greens in a by-election in 2002.

• *Con Sciacca was in fact the member for the seat of Bowman, which had become Liberal in a redistribution; he instead contested the new seat of Bonner. Martyn Evans was the member for the abolished seat of Bonython; he instead contested the seat of Wakefield.

Government (39)
Coalition
  Liberal (33)
  National (5)
  CLP (1)

Opposition (28)
  Labor (28)

Crossbench (9)
  Greens (4)
  Democrats (4)
  Family First (1)

• Julian McGauran later left the Nationals and joined the Liberals.

John Howard told the press conference that the election would be about trust. "Who do you trust to keep the economy strong and protect family living standards?" he asked "Who do you trust to keep interest rates low? Who do you trust to lead the fight on Australia's behalf against international terrorism?"

Howard, who turned 64 in July, declined to answer questions about whether he would serve a full three-year term if his government was re-elected. "I will serve as long as my party wants me to," he said.[3]

At a press conference in Sydney half an hour after Howard's announcement, Opposition Leader Mark Latham welcomed the election, saying the Howard Government had been in power too long. He said the main issue would be truth in government. "We've had too much dishonesty from the Howard Government", he said. "The election is about trust. The Government has been dishonest for too long."[4]

The campaign began with Labor leading in all published national opinion polls. On 31 August, Newspoll published in The Australian newspaper gave Labor a lead of 52% to 48% nationwide, which would translate into a comfortable win for Labor in terms of seats. Most commentators, however, expected the election to be very close, pointing out that Labor was also ahead in the polls at the comparable point of the 1998 election, which Howard won. Howard had also consistently out-polled Latham as preferred Prime Minister by an average of 11.7 percentage points in polls taken this year.[5]

After the first week of campaigning, a Newspoll conducted for News Corporation newspapers indicated that the Coalition held a lead on a two-party-preferred basis of 52% to 48% in the government's 12 most marginal held seats. To secure government in its own right, Labor needed to win twelve more seats than in the 2001 election. In the same poll, John Howard increased his lead over Mark Latham as preferred Prime Minister by four points. The Taverner poll conducted for The Sun-Herald newspaper revealed that younger voters were more likely to support Labor, with 41% of those aged 18 to 24 supporting Labor, compared with 36% who support the Coalition.

On 9 September, during the second week of campaigning the election was rocked by a terrorist attack on the Australian embassy in Jakarta, Indonesia. John Howard expressed his "utter dismay at this event" and dispatched Foreign Minister Alexander Downer to Jakarta to assist in the investigation. Mark Latham committed the Labor party's "full support to all efforts by the Australian and Indonesian governments to ensure that happens". The parties reached an agreement that campaigning would cease for 10 September out of respect for the victims of this attack and that this would be in addition to the cessation of campaigning already agreed upon for 11 September in remembrance of the terrorist attacks in 2001.

A debate between John Howard and Mark Latham was televised commercial-free on the Nine Network at 7:30pm on Sunday 12 September. In a change from previous election debates, which involved a single moderator, the leaders were questioned by a five-member panel representing each of the major media groups in Australia. There was a representative from commercial television (Laurie Oakes), the ABC (Jim Middleton), News Limited (Malcolm Farr), John Fairfax Holdings (Michelle Grattan) and radio (Neil Mitchell). After an opening address, Howard and Latham responded to questions posed by the panel and had the opportunity to make a closing statement. The Nine Network permitted other television organisations to transmit the feed, but only the ABC chose to.

The debate was followed (only on the Nine Network) by an analysis of the leaders' performance by the "worm". The worm works by analysing the approval or disapproval of a select group of undecided voters to each statement that a leader makes. Throughout the debate, according to the worm, Latham performed strongly and Howard performed poorly. A final poll of the focus group found that 67% of the focus group believed that Latham won the debate and that 33% of the focus group believed that Howard won. Major media outlets generally agreed that Latham had won the debate, although they pointed out that with no further debates scheduled and nearly four weeks of the campaign remaining, Latham's gain in the momentum from the debate was unlikely to be decisive. Political commentators noted that the 2001 election debate, between Howard and then opposition leader Kim Beazley, gave the same worm results yet Labor still lost that election.

Officials of the Australian Electoral Commission conduct a blind ballot to determine the order of candidates on the House of Representatives ballot paper in the Division of Melbourne Ports, 17 September 2004

By the midpoint of the campaign, after Labor had released its policies on taxation and education, polls showed that the election was still too close to call. The Newspoll in The Australian, showed (21 September) Labor leading with 52.5% of the two-party-preferred vote. The ACNielsen poll published in The Sydney Morning Herald and The Age showed the Coalition ahead on 52%. The Morgan poll, which has a poor recent record of predicting federal elections, showed Labor ahead with 53% on the weekend of 18–19 September. A Galaxy Poll in the Melbourne Herald Sun showed the Coalition ahead with 51%, but showed Labor gaining ground.

Despite Latham's strong performance in the debate, most political commentators argued that he had not gained a clear advantage over Howard. They pointed to anomalies in Labor's tax policy and the controversy surrounding Labor's policy of reducing government funding to some non-government schools as issues which Howard was successfully exploiting.

John Howard and John Anderson launched the Coalition election campaign at a joint function in Brisbane on 26 September. Howard's policy speech can be read at the Liberal Party website.[6] Anderson's policy speech can be read at the National Party website.[7]

Mark Latham's policy speech was delivered, also in Brisbane, on 29 September.

During the fourth week of the campaign contradictory polls continued to appear. The ACNielsen poll published in The Sydney Morning Herald and The Age on 25 September showed the Coalition ahead with 54%, which would translate into a large majority for the government. The Newspoll in The Australian on 28 September showed Labor ahead with 52%, which would give Labor a comfortable majority.

In the last days of the campaign the environment policies regarding the logging of Tasmania's old-growth forests were released by both major parties, but too late for the Greens to adjust their preference flows on how-to-vote cards in most electorates as the majority were already printed. In the game of "cat and mouse" on Tasmanian forest policy between Mark Latham and John Howard, Latham eventually lost out when Dick Adams (Labor member for the Tasmanian seat of Lyons), Tasmanian Labor Premier Paul Lennon and CFMEU's Tasmanian secretary Scott McLean all attacked Latham's forest policy. At a timber workers' rally on the day Labor's forestry policy was announced, Scott McLean asked those gathered to pass a resolution of no confidence in Mr Latham's ability to lead the country.[8] Michael O'Connor, assistant national secretary of the CFMEU said the Coalition's forest policy represented a much better deal for his members than Labor's policy.[9] Australian Labor Party national president Carmen Lawrence later said that "Labor has only itself to blame for the backlash over its forestry policy" and that it was a strategic mistake to release the policy so late in the election campaign. She stated that she was disappointed in criticism from within the ALP and union movement, and that the party did not leave itself enough time to sell the package.[10]

Treasury and the Department of Finance reported on the validity of Labor's costings of their promises. They claimed to identify a different flaw to that identified by Liberal Treasurer Costello, but overall Labor was satisfied with the report.

On the morning of 8 October, the day before the election, a television crew filmed Latham and Howard shaking hands as they crossed paths outside an Australian Broadcasting Corporation radio studio in Sydney. The footage showed Latham appearing to draw Howard towards him and tower over his shorter opponent. The incident received wide media coverage and, while Latham claimed to have been attempting to get revenge for Howard squeezing his wife's hand too hard at a press function, it was variously reported as being "aggressive", "bullying" and "intimidating" on the part of Latham. The Liberal Party campaign director, Brian Loughnane, later said this incident generated more feedback to Liberal headquarters than anything else during the six-week campaign, and that it "brought together all the doubts and hesitations that people had about Mark Latham". Latham disputes the impact of this incident, however, having described it as a "Tory gee-up: we got close to each other, sure, but otherwise it was a regulation man's handshake. It's silly to say it cost us votes – my numbers spiked in the last night of our polling." (Latham Diaries, p. 369) According to Latham's account of events, Latham came in close to Howard for the handshake to prevent Howard shaking with his arm rather than his wrist.

The final opinion polls continued to be somewhat contradictory, with Newspoll showing a 50–50 tie and the Fairfax papers reporting 54–46 to the Coalition. Most Australian major daily newspaper editorials backed a return of the Howard government, with the notable exceptions of The Sydney Morning Herald, which backed neither party, and The Canberra Times, which backed Labor.[11]

In Victoria, Family First, the Christian Democrats and the DLP allocated their senate preferences to Labor, to help ensure the re-election of the number three Labor Senate candidate, Jacinta Collins, a Catholic who has conservative views on some social issues such as abortion. In exchange, Labor gave its Senate preferences in Victoria to Family First ahead of the Greens, expecting Family First to be eliminated before these preferences were distributed. In the event, however, Labor and Democrat preferences helped Family First's Steve Fielding beat the Green's David Risstrom to win the last Victorian Senate seat[12] and become Family First's first Federal parliamentarian. This outcome generated some controversy and highlighted a lack of transparency in preference deals. Family First were elected in Victoria after receiving 1.88% of the vote, even though the Greens had the largest minor party share of the vote with 8.8%. In Australia, 95% of voters vote "above the line" in the Senate.[13] Many "above the line" voters do not access preference allocation listings, although they are available in polling booths and on the AEC website, so they are therefore unaware of where their vote may go. The end result was one Family First, three Liberal and two Labor Senators elected in Victoria.

In Tasmania, Family First and the Democrats also directed their Senate preferences to Labor, apparently to preclude the possibility of the Liberals winning a majority in the Senate and thus reducing the influence of the minor parties. The Australian Greens' Christine Milne appeared at risk of losing her Senate seat to a Family First candidate shortly after election night, despite nearly obtaining the full required quota of primary votes. However, strong performance on postal and prepoll votes improved Milne's position. It was only the high incidence of "below the line" voting in Tasmania that negated the effect of the preference swap deal between Labor and Family First.[14] The end result was one Green, three Liberal and two Labor Senators elected in Tasmania.

In New South Wales, Democrat preferences flowing to Labor rather than the Greens were instrumental in Labor's winning of the last Senate seat. Had Democrat preferences flown to the Greens rather than Liberals for Forests and the Christian Democrats, then the final vacancy would have been won by the Greens' John Kaye. The scale of Glenn Druery's (of the Liberals for Forests party) preference deals was revealed by the large number of ticket votes distributed when he was eliminated from the count. He gained preferences from a wide range of minor parties such as the Ex-Service Service and Veterans Party, the Outdoor Recreation Party, and the Non-Custodial Parents Party. Liberals for Forests also gained the preferences of two leftish parties – the Progressive Labour Party and the HEMP Party. When Druery was eventually excluded, these preferences flowed to the Greens, but the Greens would rather have received the preferences earlier in the count. In the end, three Liberal/National Senators and three Labor Senators were elected in New South Wales.[15]

In Western Australia, the Greens' Rachel Siewert was elected to the final vacancy after the final Labor candidate was excluded. This was a gain for the Greens at the expense of the Democrats Brian Greig. While the Democrats had done a preference swap with Family First, the deal in Western Australia did not include the Christian Democrats. As a result, when the Australian Democrats were excluded from the count, their preferences flowed to the Greens, putting them on track for the final vacancy.[16] The end result was one Green, three Liberal and two Labor Senators elected in Western Australia.

In South Australia, the Australian Democrats negotiated a crucial preference swap with Family First that prevented the Greens winning the final vacancy. If the Democrats had polled better, they would have collected Family First and Liberal preferences and won the final vacancy. Former Democrat Leader Meg Lees also contested the Senate in South Australia, but was eliminated late in the count. However, Lees did have some impact on the outcome, as there were large numbers of below the line preferences for both the Progressive Alliance (as well as One Nation) which were widely spread rather than flowing to the Democrats. When the Democrats were excluded, preferences flowed to Family First which prevented the Greens' Brian Noone passing the third Labor candidate. This resulted in a seat that could otherwise have been won by the Greens instead being won by Labor on Green preferences. The flow of One Nation preferences to Labor made it impossible for either Family First or the Liberal Party to win the final vacancy. Labor's Dana Wortley was elected to the final vacancy.[17] The end result in South Australia was split 3 Liberal, 3 Labor.

In Queensland, Pauline Hanson attracted 38,000 below the line votes and pulled away from One Nation. Preferences from the Fishing Party kept the National Party's Barnaby Joyce ahead of Family First and Pauline Hanson. Joyce then unexpectedly won the fifth vacancy ahead of the Liberal Party. The sixth and last vacancy was then won by Liberal Russell Trood.[18] The final outcome was 1 National, 3 Liberals and 2 Labor.

The election of both Barnaby Joyce and Russell Trood to the Senate in Queensland resulted in the Coalition gaining control of the Senate and was confirmed by the National Party's Senate Leader Ron Boswell's in a televised telephone call to Prime Minister John Howard.[19] This result was not widely predicted prior to the election.

Despite constant media attention on preference deals, and a widely held belief that the two party preferred result for the election would be close, the Newspoll figures during the three months prior to the election showed little alteration in the first preference margin between the parties, nor was there any evidence of any voter volatility. The figures suggested, then, that as the Coalition's first preference vote was healthy, the most likely result was a Government victory. This was born out in the election results when the Liberal first preference vote of 40.5 per cent was 3.4 percentage points higher than in 2001, while Labor's first-preference vote of 37.6 per cent was its lowest since the elections of 1931 and 1934.[20] Preference flows from minor parties are much more likely to affect an election outcome when the two major parties are close. The collapse of Labor's primary vote therefore negated this effect, even though 61 out of 150 House of Representatives seats were decided on preferences.[21]

The national outcome of minor party preference distributions (in order of number primary votes received) is summarised in the following table:[22]