Played during the peak of World War I, the season was the shortest in the league's history and featured the fewest clubs, with only four clubs – Carlton, Collingwood, Fitzroy and Richmond – featuring in 1916.

Fitzroy won the premiership, its sixth VFL premiership; despite finishing in last place during the home-and-away season with a 2–9–1 win–loss–draw record, Fitzroy won all three of its finals, culminating in defeating Carlton by 29 points in the 1916 VFL grand final.

Carlton won the minor premiership by finishing atop the home-and-away ladder with a 10–2 win–loss record.

In 1916, the VFL competition consisted of four teams of 18 on-the-field players each, with no "reserves", although any of the 18 players who had left the playing field for any reason could later resume their place on the field at any time during the match.

Each of the four teams played each other four times in a 12 match home-and-away season (each team hosting each of the others twice); once the 12 round home-and-away season had finished, the 1916 VFL Premiers were determined by the specific format and conventions of the amended Argus system.