Premier
In 1890 Ballance led a loose coalition of liberal politicians to victory in the general election. The more liberal minded candidates at the election fared well as there was public discontent with the sitting administration. The background of the election was filled with strikes and an economic recession. Harry Atkinson, the Premier who had defeated Stout, was forced to resign, but not before stacking the Legislative Council with his supporters. This was a serious problem for Ballance's premiership but he was able to overcome it, partly by reducing the life-tenure of legislative councillors to one term of seven years. His successful battle with the Governor over changes to the Legislative Council helped define the relationship between the elected Premier and the appointed Governor, mostly in the Premier's favour.
As leader of Parliament's liberal faction, he brought his allies and colleagues into the Liberal Party, New Zealand's first political party, intended to embody the liberal ideas of Stout, Vogel, and Ballance himself. The next four premiers were from the party, although some (such as Richard Seddon) were more conservative than Ballance. Quiet and unassuming in manner and well read, Ballance always seemed fonder of his books and his chessboard than of public bustle. He has been described as "unassuming and unpretentious", and was quiet, polite, and extremely patient.
After hand-picking a cabinet of men of considerable talent, Ballance led the government through two difficult years of economic reform. He appointed himself as Treasurer, and in this capacity, in 1891, he implemented new land and progressive income taxes, similar to that of the taxes introduced under Grey, though more radical. Several other notable pieces of legislation were passed by Ballance in this period, such as the Land Act 1892 and the Land for Settlements Act 1892. Despite initial outcry, the tax was seen as equitable by the people, who eventually found themselves better off as a result of such a great decrease in direct taxations. He was widely praised for his handling of the economy, which expanded greatly during his term.
Ballance was actively involved in the advocacy of women's suffrage, declaring to Parliament that he believed in the "absolute equality of the sexes." This was a cause he had partially inherited from his colleague in the Stout government, Julius Vogel, and in which he was influenced by his politically astute wife.