The Queensland politician, credited as the architect of Medicare and renowned for being the man who almost became prime minister, died at the age of 90.
Hayden took over the party Liberal Party from Gough Whitlam in 1977 and he brought Labor within striking distance of winning power, only to have the prize ripped from his grasp by Bob Hawke, who replaced him just weeks before Labor won the 1983 federal election.
Hayden delivered an iconic quip in response.
"I am not convinced that the Labor Party would not win under my leadership. I believe that the drove's dog could lead the Labor Party to victory," he said at the time.
The former soldier, rugby player, rower and police officer might have been robbed of the top job but Hayden left a strong footprint in Australian politics.
Born in 1933 in the inner north of Brisbane, Hayden left school at the age of 16 and worked in various jobs before entering federal parliament in 1961 at the age of 28, having won the Queensland seat of Oxley for Labor.
As minister for social security under Whitlam he introduced Medibank (now known as Medicare) and the single mother's pension. He also served as Treasurer and later Foreign Minister.
As Social Security Minister in the Whitlam government, Hayden was the man who developed early the early blueprint for Australia's universal healthcare system was originally named "Medibank" when it commenced in 1975.
The scheme was scrapped in 1981 under the Fraser government, before being reinstated in 1984 by the Hawke government with the new branding "Medicare" so that people wouldn't confuse it with the private health fund Medibank Private, which still exists today.
Hayden rose to Labor party leader, serving as leader of the opposition from 1977 to 1983 during the years when the Liberal Party's Malcolm Fraser was prime minister.
After Hayden famously stepped aside, Hawke later made him Australia's 21st Governor-General, a role he held for seven years, from February 1989 to February 1996.
Hayden famously didn't put his hand on the bible to swear allegiance in his new role, instead offering a simple affirmation of loyalty.
But after a lifetime as an atheist, he underwent a complete change of heart in his spiritual beliefs and was baptised in the Catholic Church at the age of 85.
Prime Minister Anthony Albanese saluted the man he called "a legend of our labour movement".
"As Prime Minister and Federal Labor Leader, I mourn Bill Hayden's passing and honour his life," Albanese said in an address from Parliament House.
"My first thoughts are with Dallas, his beloved wife of 63 years, their children and all those who knew and loved him best.
"If Bill Hayden left no other legacy than as a key architect of universal healthcare, he would still stand for all time as a legend of our labour movement and a great contributor to our nation.
"Of course, in his lifetime of service, Bill gave so much more to the country he loved. Indeed in every role he held: Governor-General, Minister for Social Security, Treasurer, Foreign Minister and Labor Leader, Bill Hayden gave his utmost.
"In a time of forceful personalities, Bill Hayden was notable for his humility. Yet there was nothing modest about his ambition for Labor or Australia."
Albanese said that Hayden would be remembered as the man who laid the foundation for the social and economic reforms that created three decades of economic growth.
The PM also credited Hayden's reforms with delivering Australia a new era in education, foreign affairs, environmental policy, and universal healthcare.
"When the story of that generation is told, history should record that without Bill Hayden championing and building Medibank, there could have been no Medicare," he said.
Treasurer Jim Chalmers said his predecessor will be missed with his legacy reaching "well beyond the five months he served in that role in 1975".
"Bill Hayden was the selfless servant of the Australian people, and our party," Chalmers said of the former Treasurer.
"He was humble and grounded, responsible and respected, a wonderful Queenslander and Australian.
"He was the key transitional figure between Whitlam and Hawke but he was transformational too.
"Without him and his efforts in the late 1970s and early 1980s there'd be no long-term Labor Government, and the reform opportunities of the subsequent decades could have gone begging.
"His defining place in Labor's proud legacy of combining responsible economic management and economic reform is assured.
"His selflessness and service will be remembered long after his passing".
Queensland Premier Annastacia Palaszczuk said Hayden was a "Labor Party giant who epitomised, espoused and lived by true Labor morals and values".
"Bill Hayden was revered in the Labor movement and Queensland generally," Palaszczuk said in a lengthy post on X, formerly known as Twitter.
"I extend our government's sympathy and support to wife, Dallas, and the Hayden family."
Flags at government buildings will be flown at half mast as a symbol of respect tomorrow, with other businesses and organisations encouraged to do the same.
A state funeral will be held to honour Hayden's life.
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2023-10-21 11:07:10Z
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