After Rupert Hamer took over as Liberal Party leader and Premier, Dixon was promoted to the ministry. He variously served in several portfolios including youth, sport and recreation, housing and Aboriginal affairs. His most remembered achievement was introducing the iconic Life. Be in it. program.
In 1979 Dixon won St Kilda by an extremely narrow margin, which crucially gave the Hamer Liberal government a majority of one seat in the Legislative Assembly and meant that the Liberal Party did not need to form a Coalition with the National Party with whom relations were traditionally poor in Victoria. However in 1982 Dixon was defeated as the Liberals lost government after 27 years in office.
After his defeat Dixon has worked predominantly in Sports Administration and he currently runs public speaking seminars.