After the 1969 election, Gorton was unsuccessfully challenged for the Liberal leadership by McMahon and National Development Minister David Fairbairn.
With the Liberals falling further behind Labor in the polls in 1971, a challenge was launched in March when Defence Minister Malcolm Fraser resigned.
 Fraser had strongly supported Gorton for the leadership two years earlier, but now attacked Gorton on the floor of parliament in his resignation speech, saying that Gorton was "not fit to hold the great office of Prime Minister."

Gorton called a Liberal caucus meeting for 10 March 1971 to settle the matter.
A motion of confidence in his leadership was tied.
Under Liberal caucus rules of the time, a tied vote meant the motion was passed and hence Gorton could have remained as party leader and Prime Minister without further ado.
 However, he took it upon himself to resign, saying "Well, that is not a vote of confidence, so the party will have to elect a new leader."
A ballot was held and McMahon was elected leader and thus Prime Minister.
Australian television marked the end of Gorton's stormy premiership with a newsreel montage accompanied by Sinatra's anthem "My Way".

In a surprise move, Gorton contested and won the position of Deputy Leader, forcing McMahon to make him Defence Minister.
This farcical situation ended within five months when McMahon sacked him for disloyalty.
After the 1969 election, Gorton was unsuccessfully challenged for the Liberal leadership by McMahon and National Development Minister David Fairbairn. With the Liberals falling further behind Labor in the polls in 1971, a challenge was launched in March when Defence Minister Malcolm Fraser resigned.  Fraser had strongly supported Gorton for the leadership two years earlier, but now attacked Gorton on the floor of parliament in his resignation speech, saying that Gorton was "not fit to hold the great office of Prime Minister."
Gorton called a Liberal caucus meeting for 10 March 1971 to settle the matter. A motion of confidence in his leadership was tied. Under Liberal caucus rules of the time, a tied vote meant the motion was passed and hence Gorton could have remained as party leader and Prime Minister without further ado.  However, he took it upon himself to resign, saying "Well, that is not a vote of confidence, so the party will have to elect a new leader." A ballot was held and McMahon was elected leader and thus Prime Minister. Australian television marked the end of Gorton's stormy premiership with a newsreel montage accompanied by Sinatra's anthem "My Way".
In a surprise move, Gorton contested and won the position of Deputy Leader, forcing McMahon to make him Defence Minister. This farcical situation ended within five months when McMahon sacked him for disloyalty.
John Gorton