The Labor Party, which had been in power since the 1989 election and led by PremierWayne Goss, was elected to a third term, defeating the National/LiberalCoalition under Rob Borbidge. The Queensland Nationals and Liberals were fighting their first election as a coalition in 15 years, having renewed it midway through Goss' second term. The Coalition actually won a majority of the two-party preferred vote. However, most of that vote was wasted on landslide margins in the Nationals' rural heartland. As a result, while the Coalition scored an overall eight-seat swing, it only won nine seats in greater Brisbane, allowing Labor to hold onto power with a majority of one seat.
On 8 December 1995, the Court of Disputed Returns threw out the results in Mundingburra, which Labor's Ken Davies had won by 16 votes, after it was discovered that 22 overseas military personnel were denied the chance to vote. This forced a by-election, held in February 1996. Liberal Frank Tanti won the by-election, resulting in a hung parliament. With Labor and the Coalition holding 44 seats each, the balance of power rested with Liz Cunningham, the newly elected Independent member for Gladstone. Cunningham threw her support to the Coalition, allowing Borbidge to form a minority government.