George Brandis has been caught on camera calling his state party colleagues "very, very mediocre" in the latest embarrassing misstep for the Attorney-General.
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The same tape also recorded Senator Brandis revealing the Coalition was alarmed about the growing popularity of Pauline Hanson's One Nation Party.
Preparing to deliver a special address at the Victorian Liberal Party annual meeting on Sunday, Senator Brandis was recorded criticising the Queensland state opposition and Labor government.
The video shows Victorian Liberal Party president Michael Kroger asking Senator Brandis how the Liberal National Party opposition and its leader, Tim Nicholls, were performing ahead of the next state election in late 2017 or early 2018.
"Um, well they're not very good," Senator Brandis said.
"I'd say that the state opposition is very very mediocre, and the state government is very very mediocre, but the thing that's alarming everyone is, as you would expect, is the sudden spike in One Nation, which is now at about 16 per cent.
"And One Nation, as you know, their strength is in heartland National Party seats, and heartland Labor Party seats, the old industrial seats around Ipswich and western Brisbane.
"So I think there is every reason to believe that they will win quite a few seats in the state election."
Unaware microphones were live, Senator Brandis suggested a change in Queensland election laws could see the merged Liberal-National Party split.
"The Labor Party are bringing back compulsory preferential [voting] . . . which rather somewhat attacks the raison d'etre of the merger of the Liberal Party and National Parties," he said.
"I think there might be a revisiting of things as a result of compulsory preferential voting."
Queensland's Liberal and National parties merged in 2008.
Sky News reported the exchange on Monday afternoon.
In a statement, Mr Nicholls said the opposition recognised concerns from voters who believe they are not being heard by politicians.
"I strongly disagree with today's reported comments from Senator George Brandis," he said.
"I lead a strong and effective Queensland opposition which is holding to account an incompetent, do-nothing government with no plans for Queensland."
Privately, LNP MPs were fuming over the comments.
"Of course George has been such a shining example of good government," one said on the condition of anonymity.
"London can't come soon enough", he added, alluding to the rumour Senator Brandis could replace Alexander Downer as Australia's High Commissioner to Britain.
"At least the LNP all turn up to vote when required and vote the right way. We don't vote in support of opposition motions!"
Assistant Social Services Minister Jane Prentice told ABC radio the comments were "harsh", suggesting some state MPs might have their own assessments of Senator Brandis' performance.
Former Commonwealth solicitor-general Justin Gleeson resigned last month over a breakdown in his relationship with Senator Brandis. Senator Brandis has also come under fire for spending on books and bookcases, as well as his handling of controversial metadata legislation.
Senator Brandis and the Liberal National Party have been contacted for comment.
In September 2015, Immigration Minister Peter Dutton was forced to apologise when a boom microphone caught him joking with Tony Abbott about rising sea levels and climate change.
