Editing Jeff Kennett (section)

== Political career ==
Kennett was elected as a [[Liberal Party of Australia (Victorian Division)|Liberal]] Member of the [[Victorian Legislative Assembly]] (MLA) for [[Electoral district of Burwood|Burwood]] in 1976, having had an interest in local politics since the early 1970s.<ref name="Economou, 'Jeff Kennett', p.366">Economou, 'Jeff Kennett', p.366.</ref> His [[preselection]] for the seat reportedly irritated then [[Premier of Victoria|Premier]] [[Rupert Hamer|Dick Hamer]], who disliked Kennett's campaigning style, and had endorsed the sitting member, [[Haddon Storey]].<ref name="Economou, 'Jeff Kennett', p.366"/> However, by 1981, Kennett was promoted to Cabinet as [[Minister for Housing (Victoria)|Minister for Housing]] and [[Minister of Immigration (Victoria)|Minister of Immigration and Ethnic Affairs]]. He was one of several younger MPs whom Hamer promoted to Cabinet in a bid to renew his government. Kennett retained his post when Hamer was replaced as Liberal leader and Premier by [[Lindsay Thompson]] in June of that year.<ref name="Economou, 'Jeff Kennett', p.366"/> Following the defeat of the longstanding Liberal government in 1982, Kennett was the leading candidate to replace Thompson despite being the youngest member of the outgoing government. On 26 October, he was elected leader of the Liberal Party and hence Leader of the Opposition. He took an aggressive posture against the [[John Cain (41st Premier of Victoria)|Cain]] government, and was often criticised for his "bull-in-a-china-shop" style and his anti-government rhetoric.<ref>Economou, 'Jeff Kennett', pp.367 & Cartoon 10 between pp.146–147.</ref>

Under his leadership, the Liberals were heavily defeated by Labor in [[1985 Victorian state election|1985]].  Afterwards he faced a challenge to his leadership of the party from [[Ian Smith (Australian politician)|Ian Smith]]. Kennett survived easily, but increasingly, he was seen as an erratic and unapproachable leader{{Citation needed|date=October 2020}}. He faced two more challenges to his leadership in 1986 and 1987.<ref name="Economou, 'Jeff Kennett', p.368"/> In 1987, in one notable incident Kennett referred to the Federal Liberal leader [[John Howard]] as a 'cunt' in a mobile telephone conversation with Howard rival [[Andrew Peacock]].<ref>australianpolitics.com (1995–2006)</ref> The car-phone conversation damaged both Howard and Kennett politically,<ref>'Why Peacock was axed' ''Sydney Morning Herald'' 24 March 1987 p. 1</ref> but aided Peacock in his push to return as Federal Liberal leader (1989).<ref>[http://www.australianpolitics.com/states/vic/87-03-23_car-phone.shtml Kennett-Peacock Car Phone Conversation] {{webarchive|url=https://web.archive.org/web/20041212172222/http://www.australianpolitics.com/states/vic/87-03-23_car-phone.shtml |date=12 December 2004 }}. Retrieved 5 May 2006.</ref>

Toward the end of its second term the Cain government had lost support and the Liberals were expected to win the [[1988 Victorian state election|1988 election]]. The Liberal vote indeed rebounded strongly – they won a majority of the two-party vote – however much of this margin was wasted on landslide majorities in their heartland. As a result, the Liberals took only one seat from Labor in the capital, and were left four seats short of a majority. Failing to become premier, Kennett was again criticised within his own party, and in 1989 he was deposed in favour of a little-known rural MLA, [[Alan Brown (Australian politician)|Alan Brown]].

Kennett's performance during his first stint as Liberal leader is a matter of debate. [[Nick Economou|Economou]] sees his 1985 and 1988 election campaigns as weak,<ref name="Economou, 'Jeff Kennett', p.368">Economou, 'Jeff Kennett', p.368.</ref> while Parkinson believes he was a significant asset in pushing the [[Australian Labor Party (Victorian Branch)|Labor]] government of [[John Cain II|John Cain]] in several key seats.

===First term as premier===
Kennett publicly pledged never to attempt a return to the Liberal leadership. However, when Brown proved unable to challenge the government effectively, he allowed his supporters to call a spill in 1991. Brown realised he didn't have enough support to keep his post and resigned, allowing Kennett to retake the leadership unopposed.

With Victoria facing billions of dollars of debt, Kennett was seen as "Premier-in-waiting" from the moment he retook the leadership. Cain had resigned a year earlier in favour of Deputy Premier [[Joan Kirner]], who was unable to regain the upper hand despite being personally more popular than Kennett. The Liberals' advantage was strengthened by an important decision taken during Brown's brief tenure as leader—negotiating a [[Coalition (Australia)|Coalition]] agreement with the [[National Party of Australia – Victoria|National Party]]. The Liberals and Nationals have historically had a strained relationship in Victoria; they had sat separately for most of the second half of the 20th century. It had been believed that Kennett had been denied victory in 1988 due to a large number of three-cornered contests in rural seats.

The Coalition went into the [[1992 Victorian state election|October 1992 state election]] as unbackable favourites, having been ahead in opinion polling by large margins for almost two years. They stoked the voters' anger with a series of "Guilty Party" ads, targeting many Labor ministers and highlighting concerns in their portfolios. In the second-largest defeat that a sitting government has ever suffered in Victoria, the Coalition scored a 19-seat swing, attaining a 16-seat majority in the Legislative Assembly. The Liberals won 52 seats, enough for a majority in their own right. Nevertheless, Kennett supported his coalition partner, retaining the Nationals in his cabinet.

====State school closures====
In the first three years of office, funding for public schools and the Department of Education was substantially reduced. 350 government schools were closed, including every Technical High School ("Tech") in Victoria, and 7,000 teaching jobs eliminated.<ref>[http://www.leeds.ac.uk/educol/documents/000000771.htm STRUGGLE FOR A NEW PUBLIC DEMOCRACY School, Community and the State] {{Webarchive|url=https://web.archive.org/web/20130917052054/http://www.leeds.ac.uk/educol/documents/000000771.htm |date=17 September 2013 }}, by Tony Knight. Northland Secondary College era 1992 – 1996.</ref> The Tech School closures had a widespread, delayed effect two decades later when a skilled labour shortage in the state was declared by the government, attributable largely to the generation of children who were denied a trade-focused high school education, significantly reducing the number of school leavers commencing trade apprenticeships. The few who did so were insufficient to counterbalance the number of retiring tradespeople in the coming years. This directly resulted in the number of Skilled Migrant (subclass 190) visas being made available each year increasing to 190,000 from 2012<ref>{{cite web | url=https://australmigrate.com/subclass-190-explained/ | title=Australia's Visa Subclass 190 (State Nominated) – Explained! | date=20 July 2019 | access-date=23 November 2022 | archive-date=23 November 2022 | archive-url=https://web.archive.org/web/20221123175149/https://australmigrate.com/subclass-190-explained/ | url-status=live }}</ref> and an active campaign to entice migrants with trade qualifications to Victoria.

====Public transport====
Other controversial moves included the sacking of 16,000 public transport workers in a major technological upgrade of the system, and the initiation of a major scheme for privatisation of state-owned services, including the electricity ([[State Electricity Commission of Victoria|SECV]]) and gas ([[Gas and Fuel Corporation of Victoria]]) utilities, the ambulance service, as well as several prisons and other minor services.  The sale of the [[Totalisator Agency Board]] raised $609 million. Between 1995 and 1998, $29 billion of state assets in gas and electricity alone were sold to private enterprise (for statistics, see Parkinson, ''Jeff'', 1999).<ref>http://www.dtf.vic.au/CA25713E0002EF43/WebObj/BP4Final/$File/BPFinal.pdf{{Dead link|date=July 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
In the wake of these changes, investment and population growth slowly resumed, though [[unemployment]] was to remain above the national average for the duration of Kennett's premiership. While the benefits to the State budget figures were indisputable in the short term, the social and longer-term economic cost of the Kennett reforms have been questioned by many commentators, academics and those who suffered economically through the period of reform.<ref name="crikey.com.au">{{cite web|url=https://www.crikey.com.au/2012/07/03/carbon-price-v-privatisation-which-is-worse-in-the-latrobe/|title=Carbon price v privatisation – which is worse in the Latrobe?|date=3 July 2012|access-date=24 June 2016|archive-date=25 August 2016|archive-url=https://web.archive.org/web/20160825223522/https://www.crikey.com.au/2012/07/03/carbon-price-v-privatisation-which-is-worse-in-the-latrobe/|url-status=live}}</ref><ref name="newsweekly.com.au">{{Cite web | url=http://newsweekly.com.au/article.php?id=4292 | title=ECONOMIC AFFAIRS: Privatisation has failed to deliver cheaper electricity | access-date=26 September 2012 | archive-date=1 May 2013 | archive-url=https://web.archive.org/web/20130501020418/http://newsweekly.com.au/article.php?id=4292 | url-status=dead }}</ref><ref name="theage.com.au">{{cite news | url=http://www.theage.com.au/victoria/1-billion-nightmare-20110121-1a026.html | location=Melbourne | work=The Age | title=Billion Nightmare | access-date=26 September 2012 | archive-date=15 September 2012 | archive-url=https://web.archive.org/web/20120915185027/http://www.theage.com.au/victoria/1-billion-nightmare-20110121-1a026.html | url-status=live }}</ref><ref name="ReferenceA">{{cite news | url=http://www.theage.com.au/opinion/on-track-for-more-of-the-same-20090627-d0ho.html | location=Melbourne | work=The Age | title=On track for more of the same | access-date=26 September 2012 | archive-date=27 January 2010 | archive-url=https://web.archive.org/web/20100127091035/http://www.theage.com.au/opinion/on-track-for-more-of-the-same-20090627-d0ho.html? | url-status=live }}</ref> This campaign of privatisations and cutbacks led to governmental acts of privatisation by splitting up Melbourne's rail ([[Connex Melbourne|Hillside]], [[M-Train|Bayside]], [[V/Line]] and [[West Coast Railway (Victoria)|West Coast Rail]]) and tramways ([[Yarra Trams|Yarra]] and [[M-Tram|Swanston]]) or budget-cutting becoming popularly known as being "Jeffed".<ref>{{Cite web | url=http://www.hansard.act.gov.au/Hansard/1997/week06/1825.htm | title=Hansard of the Legislative Assembly for the ACT | access-date=7 January 2014 | archive-date=3 March 2016 | archive-url=https://web.archive.org/web/20160303230354/http://www.hansard.act.gov.au/Hansard/1997/week06/1825.htm | url-status=dead }}</ref><ref>{{Cite web | url=http://www.hansard.act.gov.au/hansard/1997/week11/3569.htm | title=Hansard of the Legislative Assembly for the ACT | access-date=7 January 2014 | archive-date=13 April 2012 | archive-url=https://web.archive.org/web/20120413224511/http://www.hansard.act.gov.au/hansard/1997/week11/3569.htm | url-status=dead }}</ref> He also cut back many regional rail services including [[The Vinelander]] (ran to [[Mildura railway station|Mildura]], services later restored to [[Maryborough railway station, Victoria|Maryborough]] as a regular V/Line service in 2011) and services to [[Leongatha railway station|Leongatha]], [[Bairnsdale railway station|Bairnsdale]] (returned in 2003), [[Dimboola]] (services later returned to [[Ararat railway station|Ararat]] in 2004).

The largest public [[protest]] in Melbourne since the [[Vietnam War]] Moratorium occurred on 10 November 1992, with an estimated 100,000 people marching in opposition to the retrenchment of many workers and the large State budget cutbacks. Kennett was undeterred by this protest, and famously commented that though there were 100,000 outside his office at Parliament that day, there were 4.5 million who stayed at home or at work.<ref>{{cite web|url=http://www.maynereport.com/articles/2010/12/13-2218-674.html|title=The Mayne Report – The first days of Jeff Kennett|access-date=15 February 2013|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304023507/http://www.maynereport.com/articles/2010/12/13-2218-674.html|url-status=live}}</ref><ref>{{cite news | url=http://www.news.com.au/national/former-labor-leader-steve-bracks-says-the-jeff-kennett-era-was-a-dangerous-time/story-fndo4cq1-1226488529180 | work=Herald Sun | title=Former Labor leader Steve Bracks says the Jeff Kennett era was a dangerous time | date=5 October 2012 | access-date=15 February 2013 | archive-date=4 October 2012 | archive-url=https://web.archive.org/web/20121004175420/http://www.news.com.au/national/former-labor-leader-steve-bracks-says-the-jeff-kennett-era-was-a-dangerous-time/story-fndo4cq1-1226488529180 | url-status=dead }}</ref>

====High-profile capital works projects====
{{Unreferenced section|date=April 2025}}
The Kennett government also embarked on a series of high-profile capital works projects, such as the restoration of [[Parliament House, Melbourne|Parliament House]], construction of a new $250 million [[Melbourne Museum]] and IMAX theatre, and a new $130 million [[Melbourne Convention and Exhibition Centre]]. Other projects included a $160 million expansion of the [[National Gallery of Victoria]]; $100 million for refurbishment of the State Library of Victoria; $65 million for a new [[Melbourne Sports and Aquatic Centre]] (MSAC); and $130 million for the construction of a new civic square on the site of the old [[Gas and Fuel Buildings]], to be known as [[Federation Square]].

The relocation of the [[Australian Grand Prix|Formula 1 Grand Prix]] from [[Adelaide]] in 1993 was a particular coup for Kennett, who had worked hard with his friend [[Ron Walker (Australian businessman)|Ron Walker]], the Chairman of the Melbourne Major Events Company, helped deliver Melbourne the hosting rights for the event from Adelaide in 1993.<ref>[http://www.theage.com.au/victoria/grand-prix-got-victoria-on-the-move-again-kennett-20100319-qm8q.html Grand prix got Victoria on the move again: Kennett] {{Webarchive|url=https://web.archive.org/web/20100322231536/http://www.theage.com.au/victoria/grand-prix-got-victoria-on-the-move-again-kennett-20100319-qm8q.html |date=22 March 2010 }}, By Jason Dowling, 20 March 2010, The Age</ref>

The most controversial project of the Kennett era was the $1.85 billion [[Crown Casino and Entertainment Complex]], a gambling and entertainment centre on Melbourne's [[Southbank, Victoria|Southbank]]. Initial plans for a casino had been made under the Labor government, however the tendering process and construction occurred under Kennett.

A$2 billion project to redevelop Melbourne's derelict [[Docklands, Victoria|Docklands]] area to include a [[Docklands Stadium|new football stadium]] was also undertaken, in addition to the large [[CityLink]] project, a project resurrected from the [[1969 Melbourne Transportation Plan]], aimed at linking Melbourne's freeways, easing traffic problems in the inner city, and reducing commuting times from the outer suburbs to the CBD.{{Citation needed|date=November 2010}}

====Macedonian name dispute====
[[ File:Grand Central apartments, Spencer Street, Melbourne 25.jpg|thumb|Kennett speaking at a event]]
In the mid-1990s, Premier Kennett backed the Greek position over the [[Macedonia naming dispute|Macedonian question]]<ref name="Danforth172"/> in his attempts to shore up local electoral support.<ref name="Jakubowicz3">{{cite conference|last=Jakubowicz|first=Andrew|title=The State, Multiculturalism and Ethnic Leadership in Australia|conference=Joint Seminar – Institute of Commonwealth Studies, Australian Studies Centre, and the Centre for Multicultural Education|page=3|date=26 June 1995|publisher=University of London|url=http://www.multiculturalaustralia.edu.au/doc/jakubowicz_5.pdf|access-date=7 July 2022|archive-date=28 March 2022|archive-url=https://web.archive.org/web/20220328194058/http://www.multiculturalaustralia.edu.au/doc/jakubowicz_5.pdf|url-status=live}}</ref> Kennett's stance gained him supporters from the Melburnian [[Greek Australians|Greek community]], whereas he was referred to as "Kennettopoulos" by the [[Macedonian Australians|Macedonian community]].<ref name="Danforth172">{{cite book|last=Danforth|first=Loring M.|title=The Macedonian conflict: Ethnic nationalism in a transnational world|year=1997|publisher=Princeton University Press|isbn=9780691043562|url=https://books.google.com/books?id=MkT_DwAAQBAJ&q=Kennett+Macedonian&pg=PA172|page=172}}</ref>

At Kennett's insistence, his state government in 1994 issued its own directive that all its departments refer to the language as "[[Macedonian language|Macedonian]] (Slavonic)" and to [[Macedonians (ethnic group)|Macedonians]] as "Slav Macedonians".<ref name="ClyKip27"/><ref name="Mulheron294">{{harvnb|Mulheron|2020|p=294.}}</ref> Reasons given for the decision were "to avoid confusion", be consistent with federal naming protocols toward Macedonians and repair relations between Macedonian and Greek communities.<ref name="ClyKip27"/><ref name="Mulheron293294">{{cite book|last=Mulheron|first=Rachael|title=Class Actions and Government|year=2020|publisher=Cambridge University Press|isbn=9781107043978|url=https://books.google.com/books?id=2dPQDwAAQBAJ&dq=Victorian+premier+Macedonian&pg=PA294|pages=293–294|access-date=19 March 2023|archive-date=24 August 2023|archive-url=https://web.archive.org/web/20230824052024/https://books.google.com/books?id=2dPQDwAAQBAJ&dq=Victorian+premier+Macedonian&pg=PA294|url-status=live}}</ref> It was accepted that it would not impact the way Macedonians self identified themselves.<ref name="ClyKip27">{{harvnb|Clyne|Kipp|2006|p=27.}}</ref> The decision upset Macedonians, as they had to use the terms in deliberations with the government or its institutions related to education and public broadcasting.<ref name="ClyKip28">{{harvnb|Clyne|Kipp|2006|p=28.}}</ref> The Macedonian Community challenged the decision on the basis of the [[Racial Discrimination Act 1975|Race Discrimination Act]].<ref name="ClyKip29"/> After years of litigation at the Australian [[Human Rights and Equal Opportunity Commission]] (HREOC), the [[Australian Federal Court|Federal Court]] and [[Australian Federal Court|High Court]], previous judicial rulings were upheld that found Kennett's directive unlawful as it caused discrimination based on ethnic background and was struck down from usage in 2000.<ref name="ClyKip29">{{cite book|last1=Clyne|first1=Michael G.|last2=Kipp|first2=Sandra|title=Tiles in a Multilingual Mosaic: Macedonian, Filipino and Somali in Melbourne|year=2006|publisher=Pacific Linguistics|isbn=9780858835696|url=https://openresearch-repository.anu.edu.au/bitstream/1885/146737/1/578_Clyne%26Kipp.pdf|page=29|access-date=7 July 2022|archive-date=25 June 2022|archive-url=https://web.archive.org/web/20220625152603/https://openresearch-repository.anu.edu.au/bitstream/1885/146737/1/578_Clyne%26Kipp.pdf|url-status=live}}</ref>

===Second term as premier===
Kennett's personal popularity was mostly average to high through his first term, though that of the government as a whole went through peaks and troughs. Without a [[by-election]] in the previous four years, the [[1996 Victorian state election|1996 state election]] shaped up as the first test of the 'Kennett Revolution' with the electorate. The Coalition was expected to win a second term at the 30 March election, albeit with a somewhat reduced majority.  At the [[1996 Australian federal election|federal election]] held four weeks earlier, while Labor was heavily defeated, it actually picked up a swing in Victoria.

However, to the surprise of most commentators, the Coalition only suffered a two-seat swing, allowing it to retain a comfortable 14-seat majority. The Coalition actually picked up modest swings in Melbourne's outer suburbs, which have traditionally decided most state elections. Several negative trends (for the Liberals) were obscured somewhat by the euphoria of victory. The government's sharp cuts to government services were particularly resented in country Victoria, where the Liberals and Nationals held almost all the seats. The loss of the [[Electoral district of Mildura|Mildura]] seat to independent [[Russell Savage]] was an indication of this disaffection, and when in February 1997 independent [[Susan Davies]] was elected to the seat of [[Electoral district of Gippsland West|Gippsland West]], this trend seemed set to continue.

However, the verdict of many was that the 'Kennett Revolution' was far from over – indeed it was seemingly set in stone with the opening of the [[Crown Casino and Entertainment Complex|Crown Casino]] in May 1997. Kennett's profile continued to grow as he became a major commentator on national issues, including urging the new government of [[John Howard]] to introduce tax reform, and actively opposing the rise of the [[One Nation (Australia)|One Nation]] Party of [[Pauline Hanson]]. In this last case, Kennett did not shy away from criticising the media, but also the decision of the Howard government to not actively oppose Hanson's agenda.<ref>George Megalogenis, ''The Longest Decade'', Carlton North: Scribe, 2006, pp.212–213.</ref>

Kennett was influential in [[Melbourne]] bidding for the [[2006 Commonwealth Games]]. Three cities initially expressed interest in hosting the event; Melbourne, [[Wellington]] and [[Singapore]]. [[Singapore]] dropped out before its bid was officially selected by the [[Commonwealth Games Federation]], leaving only two candidate cities. In the weeks prior to the announcement of the 2006 host, [[Wellington]] withdrew its bid, citing the costs involved with matching the bid plan presented by Melbourne, which became the default host without members of the Federation going to vote.<ref>[http://www.commonwealthgames.org.au/Templates/Newsletter_volume2_No2.pdf Official Newsletter Volume 2, No 1] {{webarchive|url=https://web.archive.org/web/20110216221409/http://commonwealthgames.org.au/Templates/Newsletter_volume2_No2.pdf |date=16 February 2011 }} May 1999, Commonwealth Games Australia</ref>

The government lost ground over the next few years, with high-profile disagreements with the [[Director of Public Prosecutions]] [[Bernard Bongiorno]], and [[Chief Audit Executive|Auditor-General]] [[Ches Baragwanath]] fuelling criticism of Kennett's governmental style. Kennett's perceived antipathy to Baragwanath led to 1997 legislation to restructure the office of the Auditor-General and set up Audit Victoria. While Kennett promised the independence of the office would be maintained, many saw his government's actions as an attempt to curb the Auditor-General's power to criticise government policy.<ref>John Waugh, 'The Kennett Government and the Constitution: No Change?', in Brian Costar & Nicholas Edonomou, ''The Kennett Revolution: Victorian Politics in the 1990s'', Sydney: University of New South Wales Press, 1999, pp.59, 61.</ref> Widespread community debate and substantial public dissent from Liberal MPs and Party members ensued, with MLA Roger Pescott resigning from Parliament at the height of the debate; citing his disagreement with this Bill and Kennett's style in general.  The Liberal Party lost the by-election in Mitcham.

Further scandals involving the handling of contracts for the state emergency services response system damaged the credibility of Kennett in 1997–1998, while rural dissent continued to grow.

Personal difficulties also began to affect Kennett and his family. The strains of public life led to a trial separation between Felicity and Jeff in early 1998 (patched up by the end of the year), while earlier in Kennett's first term, public scrutiny had led to the forced sale of the KNF Advertising Company, despite all Kennett's involvement having been transferred to his wife's name. There were rumours in 1998 that Kennett might retire from politics; these were mostly centred around [[Phil Gude]], his party deputy. These eventually came to nothing.

In July 1998, Liberal MP [[Peter McLellan]], Member for Frankston East, resigned from the party in protest over alleged corrupt Liberal Party [[Australian Senate|Senate]] preselection, changes to WorkCover and the auditor-general's office.  Again, Kennett failed to pick up the warning signs of declining support for his style of leadership.

Labor leader [[John Brumby]] took care to capitalise on each of Kennett's mistakes over this period, though his absences in rural electorates were misunderstood by many Labor MPs, and led to his replacement by [[Steve Bracks]] in early 1999. Bracks, who came from [[Ballarat]], was popular in rural areas and was seen as a fresh alternative to Brumby, who nevertheless remained a key figure in the [[shadow Cabinet]].

===1999 election loss===
Despite Bracks' appeal, Kennett entered the [[1999 Victorian state election|1999 election]] campaign with a seemingly unassailable lead, and most commentators and opinion polls agreed that the Coalition would win a third term.

However, in a shock result, the Coalition suffered a 13-seat swing to Labor.  While there was only a modest swing in eastern Melbourne, which has historically decided elections in Victoria, the Coalition suffered significant losses in regional centres such as [[Electoral district of Ballarat East|Ballarat]] and [[Electoral district of Bendigo East|Bendigo]].  ABC elections analyst [[Antony Green]] later said that when he first saw the results coming in, it looked so unusual that he thought "something was wrong with the computer."<ref>Comment by [[Antony Green]] at pollbludger ([http://blogs.crikey.com.au/pollbludger/?p=356#comments] {{Webarchive|url=https://web.archive.org/web/20140509001053/http://blogs.crikey.com.au/pollbludger/?p=356#comments|date=9 May 2014}}, 8 May 2006, accessed 2 February 2010.</ref>

Initial counting showed Labor on 41 seats and the Coalition on 43; a supplementary election had to be held in [[Electoral district of Frankston East|Frankston East]] following the death of sitting independent [[Peter McLellan]].  The balance of power rested with three independents--[[Russell Savage]], [[Susan Davies]] and newly elected [[Craig Ingram]].  Negotiations began between the Coalition and the three independents. While Kennett acceded to all but two of their demands, his perceived poor treatment of Savage and Davies in the previous parliament meant that they would not even consider supporting a Coalition [[minority government]] headed by Kennett. On 18 October, two days after Labor won the supplementary election in Frankston East, the independents announced they would support a Labor minority government.  The agreement entailed Labor signing a Charter of Good Government, pledging to restore services to rural areas, and promising parliamentary reforms.

Kennett's supporters urged the Coalition to force a vote of 'no confidence' on the floor of the parliament in a last-ditch effort to force Savage, Davies and Ingram to support Kennett. However, with the Liberals divided on Kennett's future role, Kennett retired from all of his offices, saying he wished to have no further involvement in politics.  Labor won the ensuing by-election in Burwood.

===Rumoured returns to politics===
Following the Liberals' second successive defeat in the [[2002 Victorian state election|2002 election]], rumours began that Kennett was planning a comeback to politics. The issue came to a head in May 2006 after the sudden resignation of Kennett's successor, [[Robert Doyle]], when Kennett announced he would contemplate standing in a by-election for Doyle's old seat of [[electoral district of Malvern|Malvern]] and offering himself as party leader. His stance was supported by Prime Minister [[John Howard]], who rated him as the party's best hope to win the [[2006 Victorian state election|November 2006 state election]]. But within 24 hours Kennett announced he would not return to Parliament rather than running against [[Ted Baillieu]], whom Kennett had been grooming for the top post since 1999.<ref>{{cite news | last=Harrison | first=Dan | title=Kennett calls it quits | date=5 May 2006 | newspaper=The Age | url=http://www.theage.com.au/news/national/kennett-calls-it-quits/2006/05/05/1146335899587.html?page=fullpage#contentSwap1 | location=Melbourne | access-date=5 May 2006 | archive-date=8 July 2009 | archive-url=https://web.archive.org/web/20090708193221/http://www.theage.com.au/news/national/kennett-calls-it-quits/2006/05/05/1146335899587.html?page=fullpage#contentSwap1 | url-status=live }}</ref><ref>{{cite news | last=Silkstone | first=Dan | title=Jeff admits: I asked Ted the wrong question | date=6 May 2006 | newspaper=The Age | url=http://www.theage.com.au/news/national/jeff-admits-i-asked-ted-the-wrong-question/2006/05/05/1146335926876.html | location=Melbourne | access-date=5 May 2006 | archive-date=17 May 2006 | archive-url=https://web.archive.org/web/20060517104019/http://www.theage.com.au/news/national/jeff-admits-i-asked-ted-the-wrong-question/2006/05/05/1146335926876.html | url-status=live }}</ref> John Howard was reported to have been "embarrassed" by having publicly supported Kennett before his decision not to re-enter politics.<ref>{{cite news | last=Austin and Tomazin | first=Paul and Farrah | title=Kennett backdown infuriates Howard | date=6 May 2006 | newspaper=The Age | url=http://www.theage.com.au/news/national/kennett-backdown-infuriates-pm/2006/05/05/1146335926867.html?page=fullpage#contentSwap1 | location=Melbourne | access-date=5 May 2006 | archive-date=29 September 2007 | archive-url=https://web.archive.org/web/20070929111315/http://www.theage.com.au/news/national/kennett-backdown-infuriates-pm/2006/05/05/1146335926867.html?page=fullpage#contentSwap1 | url-status=live }}</ref>

In 2008, it was rumoured that Kennett was planning to stand for Lord Mayor of Melbourne. Despite endorsing future Lord Mayor [[John So]] in the 2001 mayoral elections, Kennett was quoted as saying "I think the city is ready for a change". Kennett claimed he had been approached by "a range of interests" to run for the position, but in the end did not do so.<ref>{{cite news| last=Ferguson| first=John| title=Mayor race: Eddie McGuire says no, but Jeff Kennett might say yes| date=24 July 2008| newspaper=Herald Sun| url=http://www.news.com.au/heraldsun/story/0,21985,24067822-661,00.html| archive-url=https://web.archive.org/web/20080725083441/http://www.news.com.au/heraldsun/story/0,21985,24067822-661,00.html| url-status=dead| archive-date=25 July 2008}}</ref> Former Liberal leader Robert Doyle ultimately won the election.

===2020: Indigenous voice to government===
On 15 January 2020, it was announced that Kennett would be one of the members of the National Co-design Group of the [[Indigenous voice to government]].<ref name=nationalgroup>{{cite web | title=National Co-design Group | website=Indigenous Voice | url=https://voice.niaa.gov.au/whos-involved/national-co-design-group | access-date=18 July 2020 | archive-date=18 July 2020 | archive-url=https://web.archive.org/web/20200718064711/https://voice.niaa.gov.au/whos-involved/national-co-design-group | url-status=dead }}</ref>