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Labor had won the 1925 election in a landslide, with the Nationalist Party losing five seats in the House of Assembly. In 1928, leading up to the election, the Nationalists reverted to "hard politics", criticising Labor PremierJoseph Lyons for an increasing unemployment problem and economic stagnation. This shift was much to the chagrin of Lyons, who had encouraged cordial relations with the Nationalists, and referred to their leader John McPhee as a "colleague and mate".
The Labor Party won a slim majority of the vote in the 1928 election, but only fourteen seats. As the Nationalist Party held half the seats in the House of Assembly and had the support of one Independent, Nationalist leader McPhee became Premier of Tasmania, and praised Lyons for his statesmanship.
Prior to the 1925 election, the Nationalist Party had split with a number of candidates, including former Premier Walter Lee, contesting the election under a "Liberal" banner. The grouping subsequently reunited with the Nationalists.