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Although the Liberals had won the 1913 election, a subsequent by-election had seen both parties holding 15 seats in the House of Assembly and Solomon losing government to Labor's John Earle. Earle's government had been appointed on the expectation that Earle would quickly call for a dissolution of the House of Assembly, which he refused to do, and successfully appealed to the Colonial Office.
At the election, Earle was the incumbent Premier of Tasmania and the Liberal Party was headed by Walter Lee. The Labor Party made no gains at the 1916 election. Joshua Whitsitt won as an Independent. The Liberals had no clear majority, winning 15 seats. Lee became Premier, as leader of the party with the most seats.