The motion came from the Richmond Shire Council in Far North Queensland.
It was defeated by 123 votes to 74.
Long-serving Ipswich Councillor Paul Tully opposed the motion saying if the new state ever seceded from Australia Bob Katter would want to be the President of the Republic of North Queensland.
"Bob's ego is already as big as North Queensland, so just imagine if he ever became President Katter.
"The Premier Anna Bligh has already ruled out a new state, so this motion is a waste of time," Cr Tully said.
Conference speakers from southern Queensland said Australia needed fewer states and not more.
Cr Paul Tully - 07 3818 6900