A by-election was held for the
New South Wales Legislative Assembly electorate of
Kiama on 12 January 1871 because of the resignation of
Henry Parkes. Parkes had resigned in October 1870 due to financial difficulties following the failure of his importing venture, but had been re-elected at the
subsequent by-election. Barely one month later Parkes was forced into bankruptcy and had to resign again.[1][2]