An Australian Labor Party politician, Lawrence began her political career in Western Australian State politics becoming a parliamentarian in 1986. She was (Australia's first female) Premier and Treasurer of Western Australia from 1990-1993. In 1994 she was elected to Federal Parliament as the Member for Fremantle. She was appointed the Minister for Human Services and Health and Minister Assisting the Prime Minister for the Status of Women. In 2002, she was the Shadow Minister for Reconciliation, Aboriginal and Torres Strait Islander Affairs; the Arts and Status of Women.
Before entering politics, Lawrence was a resident psychologist with the Western Australia Department of Health and a lecturer at the Faculty of Medicine of the University of Western Australia.