PERTH (REUTERS) - Australia's opposition Labor party pulled off an electoral upset on Saturday and looks set to oust the ruling Liberal-National party in Queensland state in a voter backlash that threatens the political future of Prime Minister Tony Abbott.

The conservative government that ruled Queensland with a massive majority looks set to lose office after one term in a result credited to its plan to sell public assets and cut government services as well as the rising unpopularity of Abbott, the nation's federal conservative leader.

With 70 per cent of the vote counted on Saturday, Labor looks to have secured 44 seats, just one shy of the 45 needed to govern in the 89-seat legislative assembly. The Liberal-National party (LNP) looks set to hold on to 33 seats.