In January 1871 Lalor lost his seat in an election. He was made Chairman of the Clunes Water Commission with the job of getting water for the town of Clunes. He was voted back into parliament again in 1874. In 1875 he became Postmaster General (in charge of the postal service) and later Commissioner for Trade and Customs. From 1880 to 1887 he was Speaker of the Legislative Assembly. Lalor's wife and daughter died in 1887, he was also sick with diabetes, so he stopped being Speaker, but stayed as representative for South Grant until his death.