Liberal Party shock as Kelly O'Dwyer quits politics ahead of election

The Liberal Party will lose one of its most senior women and moderate figures with Jobs and Industrial Relations Minister Kelly O'Dwyer to quit politics.

Ms O'Dwyer was flanked by Prime Minister Scott Morrison on Saturday afternoon as she announced she will not recontest her Melbourne electorate of Higgins at the election.

Jobs Minister Kelly O'Dwyer will announce her resignation from politics on Saturday.Credit: Alex Ellinghausen

She said she was "absolutely confident" Mr Morrison would lead the Coalition to victory in at the election but she could not commit to another three years in public life.

Ms O'Dwyer said she was partly motivated by her desire, at 41, to have a third child, and "everything would have to go right" for that to occur. Her children will soon reach primary school age and she did not want to "consistently miss out" on important family time.

"This does not mean that men or women need to choose between family and public service - they don't," Ms O'Dwyer said. "Of course there are sacrifices and for a time I have willingly made them. With the right support you can do both, and do both well."

She said she would not normally canvass her "very personal" reasons for leaving politics but "there will be some who try and use my announcement today to advance their own agendas, and I absolutely do not want that".

Mr Morrison said Ms O'Dwyer came to him earlier in the week with her decision, and she would continue to serve in her cabinet roles until the election.

In Parliament since 2009 and a cabinet minister since 2015, Ms O'Dwyer has held portfolio responsibilities for financial services, jobs, industrial relations and women.

Her electorate in Melbourne's leafy eastern suburbs has been targeted by the Greens, whose candidate Jason Ball reduced the margin to 8 per cent at the last election.

Shortly after the Liberals' disastrous loss at the Victorian state election, Ms O'Dwyer told colleagues the party was seen as "homophobic", "anti-women" and "climate change deniers", according to reports.

Ms O'Dwyer said on Saturday she had "no doubt" the Liberal Party would preselect another woman to contest the seat of Higgins.

"I am incredibly confident that this seat ... will be represented incredibly well by one of the very talented people who will come forward, and I have no doubt that it will be a woman," she said.

On Friday, Liberal senator David Bushby also announced his resignation from politics after more than 11 years, and immediately took up an overseas posting as an Australian consul-general to the United States based in Chicago.

The federal election is due to be held in May. On current polling, the Coalition would be swept from office with a sizeable swing to the Labor opposition.