Baxter retained his previous portfolios after being re-elected in 1985, and received another promotion in 1988, when he became Leader of the National Party in the Legislative Council. In 1990, he was made Shadow Minister for Roads and Ports as part of the Liberal-National coalition opposition. Two years later, Jeff Kennett led the coalition to an election victory, and Baxter became Minister for Roads and Ports in the new government. However, the 1996 election saw a changed ratio between the two parties, and the National Party lost one of its portfolios to the Liberals. As a result, Baxter returned to the backbenches, and instead took up a position as Chairman of the Parliament House Completion Authority, which oversaw the renovation of Parliament House in order to comply with the original architectural designs.
