Campbell was a supporter of the independence of the colony of Victoria from New South Wales, and following separation in July 1851, was elected to the Victorian Legislative Council for Loddon at the first elections in November 1851. In December 1852 and January 1853, Campbell chaired a Select committee of the Council which investigated organisation on the goldfields, and concluded that the existing arrangements, including the rigid licensing system, should continue despite much opposition from officials who argued that the system was failing. Campbell had previously advocated for the imposition of licences on the Mount Alexander goldfield, advising the Colonial Secretary that the miners were faring well and could easily afford to pay the fee.