The breaking point for the Nationalist government was Premier Alexander Peacock's decision to increase rail fares to rural areas.

After the election, on 29 November, the rural faction of the Nationalist government led by Bowser won control of the party, ousting Peacock.

The previous government's increase on rail fares was reversed, but the issue of how the railways were to be financed remained unresolved.

The opposition parties defeated a railway estimates bill in March 1918, and Bowser resigned as Premier in response, having little taste for the office.

Peacock supporter Harry Lawson became Premier, after which the factions reunited and formed majority government with 40 of the 65 seats.