In April 1955, seven Victorian federal MPs and some state MPs were expelled from the ALP, and they formed the party under the influence of B.A. Santamaria. All were defeated at the subsequent election in December 1955. The federal MPs were:
However, the party did elect Frank McManus as a Senator for Victoria in this election, and successful ALP candidate George Cole had chosen before the election to become part of this party. Additionally, Frank Scully gained the seat of Richmond in the Victorian Legislative Assembly in the May 1955 Victorian election.
In 1957, the party became the Democratic Labor Party.