Federal Politics
As Premier of the largest colony, Lyne considered himself entitled to be the first Prime Minister of Australia when the colonies federated in January 1901. In December 1900 the Governor-General, Lord Hopetoun, offered the post to Lyne; but because Lyne had opposed federation, most senior politicians, notably Alfred Deakin, told Hopetoun that they would not serve under Lyne. Hopetoun was forced to accept the majority view that Edmund Barton, the leader of the federation movement, should be Prime Minister.
Lyne became Minister for Home Affairs in Barton's cabinet on 1 January 1901 and was elected to the first federal Parliament as member for the Division of Hume in March 1901. He was responsible for the Commonwealth Franchise Act 1902 (preceded the Commonwealth Electoral Act), including the introduction of women's suffrage and the establishment of the Commonwealth Public Service. He remained Minister for Home Affairs until Charles Kingston left the cabinet, and became Minister for Trade and Customs in his stead on 7 August 1903. He retained this position when Deakin became Prime Minister towards the end of September. The general election held in December 1903 resulted in the return of three nearly equal parties, and Deakin was forced to resign in April 1904 but came back into power in July 1905 with Lyne in his old position.
In April 1907 Lyne accompanied Deakin to the colonial conference and endeavoured to persuade the British politicians that they were foolish in clinging to their policy of free trade. Deakin and Lyne returned to Australia in June, and when Sir John Forrest resigned his position as Treasurer at the end of July 1907, Lyne succeeded him.
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