The ambiguous result of the 1922 election had seen a coalition form between the Nationalist and Country parties, and John Hayes was appointed Premier of Tasmania. Hayes and his ministry did not last a full term, however – Tasmania had borrowed heavily during World War I, and was in a poor financial state. Calls for Hayes to resign began in mid-1923, and he did so after a meeting of dissident MHAs undermined his support. James Newton was briefly elected Nationalist leader, but after he failed to achieve the required support, Hayes organised for Walter Lee to be voted leader, and he became the next Premier, as Hayes was appointed to the Australian Senate.
Walter Lee's ministry was also short-lived. In October 1923, a small group of Nationalists revolted against him, and pledged support for Joseph Lyons and the opposition Labor Party. Lyons was sworn in as Premier, and was incumbent by the time of the 1925 election.