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Immediately after the dismissal of Whitlam, the Governor-General commissioned Fraser as interim Prime Minister pending a general election. Parliament was dissolved.
Fraser's Liberal-National Country Party won a landslide victory against the Australian Labor Party (ALP) at a general election on 13 December 1975. They won 91 seats (out of 127) in the House of Representatives and control of the Senate with a six-seat majority.
Fraser easily won the next general election in December 1977, although the ALP won back 14 seats from the Liberals. A new 'centre' party, the Australian Democrats, was formed in May 1977 by Don Chipp, a former Liberal minister who had become disillusioned with the party under Fraser's leadership. At the December 1977 election, Chipp took one of two Senate seats the Democrats won.
Fraser's government was returned to power at the general election in 1980. However, with three new senators elected, the Democrats gained the balance of power in the Senate.
Despite a reputation for conservatism and determination to slash government expenditure, Fraser's Liberal-National Party coalition continued and extended the process of reform begun under the previous ALP government. Among its innovations were these:
1976: establishment of the Family Court of Australia and Federal Court of Australia; Northern Territory granted self-government; passage of Aboriginal Land Rights (Northern Territory) Act; position of Federal Ombudsman established; ABC FM radio service established.
1977: National Aboriginal Conference established; Special Broadcasting Service (SBS) established to provide multilingual radio and television services.
1978: approval of parliament for building a new, permanent Parliament House on Capital Hill, Canberra. The winning design was announced in June 1980 and construction work began soon after.
1979: Norfolk Island Legislative Assembly established; Fraser played a key role in ending racial war in the former UK colony of Rhodesia, enabling elections to be held and a new nation - Zimbabwe - to be established under black rule; the government established the Australian Refugee Advisory Council to advise it on the settlement of refugees, many of whom had been arriving as 'boat people' from Vietnam since 1978.
1980: Aboriginal Development Commission established; in protest against the Soviet invasion of Afghanistan the government cut wheat sales to the Soviet Union and discouraged Australian participation in the Moscow Olympics; first commercial FM radio broadcasting stations and first ethnic television stations established under SBS (Channel 0 Sydney and 28 Melbourne).
1981: the government declared 36,000 square km of the Cairns section of the Great Barrier Reef as a marine park.
1982: appeals to the Privy Council were abolished, making the High Court the final court of appeal; a new migrant selection scheme was introduced, based on criteria relating to family reunion and the need for skilled workers.
Although Fraser's government introduced many innovations, it was criticised by some Liberals for not initiating economic reform when it had the opportunity. Fraser proved a true conservative on economic issues, for example resisting economic deregulation and tariff reform.
Fraser travelled widely as both minister and Prime Minister to Asia, Africa, North America, the Pacific and Europe. He became a prominent figure in CHOGM (Commonwealth Heads of Government Meetings), and hosted CHOGM in Sydney in February 1978, and in Melbourne and Canberra in September-October 1981.
On 3 February 1983, Fraser gained a double dissolution of parliament and called a general election. He hoped to gain an advantage from the disunity in the federal parliamentary ALP over Bob Hawke's challenges to WG Hayden's leadership of the ALP. Twenty minutes after Fraser announced the election, Hayden resigned as ALP leader allowing Hawke to assume leadership.
Following an election campaign largely focusing on Fraser's and Hawke's personalities, the ALP won a 25-seat majority in the House of Representatives. With 30 out of 64 Senate seats, the ALP had the largest number of Senators, but the success of the Democrats in winning five seats enabled them to continue to hold the balance of power in the Senate.
In conceding defeat early on 6 March 1983, the morning following the election, Fraser announced his intention of resigning from the Liberal leadership. He resigned from parliament five days later, on 11 March, and later that day the parliamentary Liberal Party elected Andrew S Peacock to replace him as leader.
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