In Office
After three years in the Productivity portfolio, Macphee replaced Michael MacKellar as the Minister for Immigration and Ethnic Affairs. Fraser and MacKellar had already adopted the recommendations of the Galbally report, which led to a new framework for migrant settlement. Macphee, with the full support of Fraser, continued the pace of reform, allowing large numbers of Indochinese refugees into Australia and he also introduced a family reunion scheme for these refugees. Macphee was assisted by receiving full bipartisan support from the shadow Immigration Minister Mick Young.
In the 1980 and the 1983 elections, Macphee retained his seat defeating Labor candidate Chris Kennedy. Macphee helped oversee the introduction of the Special Broadcasting Service. He played an important role in the opening of the Australian Institute of Multicultural Affairs and he would work with the Institute's director, Petro Georgiou, in overseeing government policy in this area.
After his retirement Macphee described his time as Immigration Minister as the most 'exciting... absolutely enriching' time of during his period in parliament.
Macphee became a Cabinet minister in May 1982 when Fraser promoted him to Minister for Employment and Youth Affairs. Macphee defended the role of compulsory arbitration as a means to protect wages in spite of pressure from the more conservative elements within the party, and held this post until the Fraser Government was defeated in March 1983.
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