Labor came to power in Tasmania in 1914, after the existing Liberal government of Albert Solomon was defeated on a confidence motion. The new premier was John Earle, who had previously held office for one week in October 1909. In the new government, Lyons was made Treasurer, Minister for Education, and Minister for Railways; it was common for ministers to hold more than one portfolio. He was somewhat inexperienced with economic matters, and often turned to his friend and colleague Lyndhurst Giblin for advice; they eventually renewed their relationship at federal level during the 1930s. Less than a month after taking office, Lyons announced that the government was moving its accounts from the Commercial Bank of Tasmania to the Commonwealth Bank, which had only been established a few years earlier. In return he was able to secure a substantial loan and an overdraft of £100,000. The government faced a number of challenges during its two years in office, including a statewide drought, a series of bushfiress in early 1915, and labour shortages due to the ongoing war. As Labor was in minority, many of its legislative initiatives were thwarted by the opposition. The party lost the 1916 state election by two seats, despite increasing its share of the vote.