After the Labor government of Premier Lionel Hill endorsed the controversial Premiers' Plan, the ALP state executive expelled 23 of the 30 members of the ALP caucus. The expelled MPs formed the Parliamentary Labor Party (also known as Premiers Plan Labor), with Hill as leader, and continued in office with the support of the Liberal Federation under Butler.
Amid increasing riots and protests, as well as skyrocketing unemployment, Hill left politics to become Australian Agent-General to the United Kingdom. He was succeeded by Robert Richards, who had the impossible task of leading the party into the election.
With three Labor factions--the official ALP, the Parliamentary Labor Party, and Lang Labor--contesting the election, the result was a landslide victory for the newly created Liberal and Country League, which had formed from a 1932 merger of the Liberal Federation and the Country Party under Butler's leadership. The three Labor factions won only 13 seats between them to the LCL's 29 seats. This began what would be 32 uninterrupted years of LCL government in South Australia.