Before the 1890s , there was no formal party system in New South Wales . Party labels before that time indicate a general tendency only. In the 1860s and 1870s , there was a fairly coherent Liberal tendency, led first by Charles Cowper and then by Henry Parkes. This later developed into the Free Trade Party . There was never an organised Conservative party, although some politicians used this label. Ministries which were not Liberal were usually factional. From the 1880s the party conflict was between Free Traders and Protectionists . This situation continued until the rise of the Labor in the 1890s . After Federation in 1901 , the Protectionists renamed themselves Progressives, while the Free Traders became Liberals. These two parties later merged.