Dawson entered politics at the 1893 election, as one of the two Labor candidates for Charters Towers in the Legislative Assembly of Queensland.

Dawson was inspired by Marxist economics, and performed speeches to the Social Democratic Federation on Marx and issues surrounding surplus labour.

In a remarkable coincidence, Vaiben Louis Solomon's contemporaneous ministry in South Australia outdid Dawson by a single day (1–8 December 1899).

[8] These, however, were not Cain, Fuller, or Hollway's only terms as premier; all three exceeded Dawson for total time in the role.

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.

[4][9]: 22–24 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.

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.

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.