The Eureka Stockade incident, which occurred over conditions on the gold fields, sparked a wave of indignation that would change life for all Victorians. Political reforms had been evaded by occasional acts of appeasement, but the time had come for major changes.

Before the Eureka Stockade, Governor Hotham had been trying to oust Colonial Secretary Foster in an effort to relieve the mounting dissatisfaction with his Government. A day after the incident, on the 4th of December 1854, Foster handed in his forced resignation, which would later be seen as a victory for the masses (public reaction to the Eureka Stockade was, at this point, still minimal). Though Foster had been almost powerless under the Hotham administration, the Governor would continue to use him as a scapegoat as pressure mounted.

William Haines, a London doctor turned Geelong farmer who had served on the Legislative Council from 1851, was appointed the new Colonial Secretary. Known as an honest, hard-working gentleman, his appointment was well-accepted by the populace. His popularity was enhanced when he declared his intention to introduce parliamentary representation for mining areas. However, public contentment with Haines would soon be overshadowed by the furore over the events at the Eureka.

The first reports that came out of Ballarat not only mentioned the Eureka Stockade incident, but also the fact that armies of armed diggers were marching to Melbourne. Residents of Geelong and Melbourne were alarmed, and the Legislative Council and also the Melbourne Town Council were so worried that “Special Constables” were sworn in to help defend the citizens.

Within days, fear turned to outrage when the true situation became clear. The anger over Hotham’s decisions (as he was seen as the cause of the bloodshed) caused a public cry for his recall. The city populace was now interested in the grievances of the miners, and Hotham’s £500 reward for Vern and £200 each for Black and “Lawlor” (Lalor) did not help matters. Hotham further poured salt into the wound by demanding that 13 of the captured rebels be tried for high treason.

Henry Seekamp (Ballarat Times), who had voiced his support for the miners, was charged with sedition, found guilty, and imprisoned for 3 months. During February and March, the “rebels” - who represented free of charge by some of the best legal men in the colony - were tried and acquitted. While the public celebrated, Hotham watched his reputation disintegrate.

A Commission, which included the likes of Fawkner, was appointed with a fortnight of the Eureka Stockade, and presented their findings on the 27th of March 1855. The Commission concluded that the license fee, lack of political representation on the gold fields, and land issues were the major grievances.

In April, the license fee was abolished and replaced by a 2s 6d per ounce export duty on gold, with a £1 per year “Miner’s Right” giving the right to mine a claim for that period and to vote for 8 new mining representatives in the Legislative Council. Wardens and mining courts replaced the Goldfields Commissioners and Police, and Victoria was on its way to democracy.

In November 1855, the mining representatives of the Legislative Council were elected. Ballarat elected J.B. Humffray and Peter Lalor, while Bendigo chose James Macpherson Grant, a Melbourne solicitor who had defended the Eureka rebels. Less than a year after being rebels and criminals, the men of Eureka were now politicians.