At the
first Federal election for the
Senate in 1901, Dawson was returned at the head of the Queensland Labor ticket. While in federal parliament, he was regarded as a good speaker, but struggled with persistent ill health associated with chronic lung trouble from his time as a miner, which worsened after he relocated his family from Queensland to the colder climate of Melbourne. He also struggled with alcoholism, and was absent from parliament for periods, frustrating his colleagues. In April 1904, when
Chris Watson formed the first Federal Labor government, Dawson was given the portfolio of
Minister for Defence in light of his prominent status as a former Premier. As Minister for Defence, he clashed with
Edward Hutton, the aristocratic English
General Officer Commanding the Australian Military Forces, who had resisted being answerable to the executive, and had been viewed as disrespectful by previous defence ministers. Dawson proposed a military restructure which eliminated Hutton's position, which was adopted by his successor after the ousting of the Watson government, resulting in Hutton's resignation and return to England. Dawson reportedly stated that the "most satisfying facet" of his stint as minister had been that he had "pulled down from his pedestal the biggest bounder that had ever commanded the forces in Australia." By the time of the
1906 election, Dawson had a poor relationship with the Queensland state executive of the Labor Party, and was initially demoted to the unwinnable fourth position on the Labor Senate ticket. As a result of concerns about the electoral fallout of his dumping, he was reinstated to the winnable third position on the ticket, but resigned as a candidate two months later, citing ill health. He subsequently changed his mind, but the executive refused to reinstate him, so he ran as an
independent. That move split the Labor vote, and amidst a generally bad election for Labor in Queensland, the entire ticket lost. ==Later life==