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.
This was in accordance with the precedent established at Canadian Confederation three decades earlier.

The Governor-General, Lord Hopetoun, was also of this mind, and offered the post to Lyne in December 1900, heading an interim government that would serve until the first federal election.
However, since Lyne had opposed federation, most senior politicians, notably Alfred Deakin, told Hopetoun that they would not serve under Lyne.
When it was apparent that Lyne would not be able to form a government, he returned his commission to Hopetoun.
Eventually, Hopetoun was forced to accept the majority view that Edmund Barton, the leader of the federation movement, should be Prime Minister.
Lyne's failure to form a government is known as the "Hopetoun Blunder."

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.

Lyne's name is associated with the 'Lyne Tariff'— the Customs Tariff Act of 1908—which significantly increased levels of protection for local industry.
It represented the final triumph of politicians favouring protection, over those advocating free trade, and brought to an end the main political divergence of pre-Federation Australia.
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. This was in accordance with the precedent established at Canadian Confederation three decades earlier.
The Governor-General, Lord Hopetoun, was also of this mind, and offered the post to Lyne in December 1900, heading an interim government that would serve until the first federal election. However, since Lyne had opposed federation, most senior politicians, notably Alfred Deakin, told Hopetoun that they would not serve under Lyne. When it was apparent that Lyne would not be able to form a government, he returned his commission to Hopetoun. Eventually, Hopetoun was forced to accept the majority view that Edmund Barton, the leader of the federation movement, should be Prime Minister. Lyne's failure to form a government is known as the "Hopetoun Blunder."
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.
Lyne's name is associated with the 'Lyne Tariff'— the Customs Tariff Act of 1908—which significantly increased levels of protection for local industry. It represented the final triumph of politicians favouring protection, over those advocating free trade, and brought to an end the main political divergence of pre-Federation Australia.
William Lyne