In 2006, Goward nominated for Liberal Party preselection for the New South Wales state parliament in seat of Epping in Sydney's north-west, but was defeated by the former President of the Right to Life Association, Greg Smith. She was subsequently preselected unopposed for the seat of Goulburn, to replace retiring Liberal frontbencher Peta Seaton. Goward was expected to win the seat, however an unexpectedly strong swing to Labor in the Southern Highlands area of the seat put her victory in doubt on election night. Her main contender, the Independent Mayor of Goulburn, Paul Stephenson, conceded defeat on 29 March 2007. Goward was quoted as saying that she "didn't expect to win it. I knew I was behind the whole time, even four days before the election we were told I was five points behind, so I'm just so grateful."