Leadership of The Democrats
Even before the resignation, he received an invitation to join an amalgamated centre-line party which predated the Australian Democrats. He resolutely turned down a series of such leadership offers until, on 9 May 1977, he was accorded an overwhelming standing ovation by a 3,000-strong audience at the Melbourne Town Hall and concluded "... I was committed ... and it was a good feeling".
At the December 1977 election he was elected to the Australian Senate, with one colleague (Colin Mason of New South Wales). As Democrats leader, Chipp was involved in various high-profile environmental and social-justice causes, including playing an important role in stopping the Franklin Dam Project.
At the 1980 election, the Democrats gained three more senators, giving them a total of five—a potential balance of power, which they retained until 1 July 2005, after a total lack of success at the 2004 election. Their theoretical ability to reject or amend government legislation was seldom applied, being dependent on rarely-forthcoming support from other non-government senators. It was, however, a useful avenue for publicity and effective Senate committee dealings outside the chamber.
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