In May 1909 Chelmsford accepted the appointment as
Governor of New South Wales and was sworn in at
Government House on 28 May 1909. Unlike in Queensland, his term was comparatively stable and was distinguished by good relations with the state government. At the start of his term,
Charles Wade, of the
Liberal Reform Party, was the
Premier. However, following the 1910 election, Wade's Liberals were defeated and the
Labor Party under
James McGowen was sworn in as the state's first Labor Government. Despite his conservative background, Chelmsford was able to get along well with the Labor Government. Chelmsford became friends with the Attorney General,
William Holman, with whom they shared a love of music and as a competent Viola player, Chelmsford encouraged chamber concerts at Government House. He said of the government: "I have never had a body of Ministers with whom it has been a greater pleasure to work. They are quiet, unassuming and industrious, and have won the goodwill and loyalty of their departments." From 21 December 1909 to 27 January 1910 Chelmsford acted as Administrator of the Commonwealth when the
Governor-General of Australia,
The Earl of Dudley was on leave. From April to November 1911, Chelmsford was back in England on overseas leave, thereby avoiding a major political crisis in New South Wales. In July 1911, two Labor Members of the Legislative Assembly resigned in protest over land reforms, thereby leaving McGowen's government in a minority in the assembly. Holman, who had stepped in as acting-Premier following McGowen also taking leave (Both Chelmsford and McGowen were attending the coronation of
King George V), asked the
Lieutenant Governor of New South Wales,
Sir William Cullen, to prorogue the Parliament until the by-elections were held. Cullen declined on the basis that there was no need for him to act as the Government still had the confidence of the House and that the Governor had no discretion in the matter. Holman rejected this and, when Parliament resumed, resigned along with his Ministry and the Speaker. Holman further refused to advise Cullen to ask the
Leader of the Opposition, Wade, to form a Government. Cullen did so nonetheless. Wade was wary, aware that if he accepted he too would be in a minority. Wade told Cullen that he would only accept if he was granted a dissolution. Cullen did not accept that condition and Wade refused to accept the commission. Cullen then had no choice but to recommission Holman and grant him a dissolution. Holman held onto Government tenuously as one seat was lost the by-elections. He therefore asked a member of the Opposition Liberals,
Henry Willis, to take the Chair as Speaker. In 1912 he was invested as a
Knight Grand Cross of the Order of St Michael and St George, becoming Chancellor of the Order from 1914 to 1916. His term expired and Chelmsford returned to England in March 1913. ==Viceroy of India==