 McPhee attempted a political comeback in 1937, unsuccessfully running for the seat of Denison at the 1937 federal election.He was more successful in the 1941 state election, winning a seat in Franklin, although Labor under Robert Cosgrove won that election.He retired on 23 November 1946 to concentrate on his business and humanitarian interests, and died in his sleep from cardiovascular disease in 1952, aged 74.