In August 1989 Tizard announced he would retire from politics at the next general election. When Lange's replacement as Prime Minister Geoffrey Palmer held a complete reelection of cabinet in early 1990 Tizard was dropped from the cabinet due to his impending retirement. This went against a promise made to him by Lange that he could stay on as a minister until the end of the term. Angry with the outcome Tizard threatened to resign and force a by-election unless he could come to an agreement with the government over a car and housing arrangements for himself and his wife.