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PoliticsNow: MPs calling for party room meeting to be held tonight

PoliticsNow: Turnbull’s leadership is under threat once more with Liberal MPs calling for another party room meeting.

Peter Dutton was the subject of Labor attacks in Question Time today. Picture: Kym Smith
Peter Dutton was the subject of Labor attacks in Question Time today. Picture: Kym Smith

Hello and welcome to PoliticsNow, The Australian’s live blog on the happenings at Parliament House in Canberra.

Geoff Chambers 10.06pm: Turnbull leaves for the day

Mr Turnbull, who left parliament after 9.30pm, had not received the petition last night.

Sam Buckingham-Jones 9.55pm: Molan explains vote for Dutton

Senator Jim Molan has given an explanation for his vote for Peter Dutton in the party room ballot yesterday, saying the Liberal Party “skews to the left” as it heads upwards from its base to the top.

“Over time there has been a misalignment of our party,” he told Sky News.

“When you look at the base of our party, which consists of the base of the voting population, of those people who would vote for a right of centre party, they exist in great numbers. Then we have our membership, which generally reflects those who might vote for us.

“But from then on up we skew a little to the left at each step as we get up to the federal section of the (Liberal) party. Now, the reason I voted when I was presented with an option, the reason I voted for Peter Dutton was I believe he has a greater chance of pulling us back to a right of centre party, in my view has a better chance of capturing those million or so people, a fair proportion of, and pulling them back into our party.

“The fastest growing group of voters in Australia are people of my age, and we’ve lost something like six to nine per cent of that group to others, and they’re out there, and if we can find the policies, we can pull them back in and we can actually win elections.”

Sam Buckingham-Jones 9.43pm: ‘Turnbull should have never got rid of Abbott’

Former Nationals leader and deputy prime minister Barnaby Joyce says he does not believe any Nationals MP would defect to the crossbench should Peter Dutton become Liberal leader.

Speaking on Sky News, Mr Joyce repeated his suggestion a former Liberal leader, like John Howard, be brought in to mediate the leadership crisis as he insisted member or Gippsland, Darren Chester, would not desert the government.

“Darren’s now said he wouldn’t, and that’s the most important thing. I think it’s important to respect your preselectors, I know Darren understands that very, very well,” Mr Joyce said.

“Darren’s made it clear, and it’s good of him, that it doesn’t intend to do that.”

Asked who should lead the Liberal Party, Mr Joyce did not give a name but urged any vote to happen quickly.

“My views are this, and I’ll stay consistent: Kevin Rudd should never have been got rid of by Julia Gillard, and Kevin Rudd should never have gotten rid of Julia Gillard, and Malcolm Turnbull should never have got rid of Tony Abbott, and that’s I think generally what people want,” Mr Joyce said.

“And now what we have is a situation where it’s patently bad, it’s not good for us. It means we’re not talking about the drought, we’re not talking about electricity prices, we’re not talking about inland rail. So we’ve got to get through this as quickly as possible and move on. Whatever decision they make - and I’ve made a suggestion about how they could do that, you could get a third party such as John Howard… that would hopefully make it a lot more polite or dignified way to deal with this issue.”

Sam Buckingham-Jones 9.24pm: Jim Molan says he has signed the petition

Former army major general turned senator, Jim Molan, says he signed a petition calling for a party room meeting and that things are going “according to plan”.

“I signed it and I saw my name and that’s all I’m going to say about it. I’m trying furiously to deal in fact tonight. We’ve had so much information come through I just don’t know where we stand at the moment,” Senator Molan told Sky News.

“I don’t know who’s creating this pseudo crisis. It could be anyone, or it could be quite normal. I didn’t expect anything to happen this evening. As far as I’m concerned, things are going according to plan.

“My understanding is (Mr Turnbull) decides when the party room convenes for this. It will only be pressure on him and a desire by him to do the right thing… so all that can be done is to put the petition to him and let’s see what the decision he makes. It’s certainly not going to be tonight.”

Primrose Riordan 9.30pm: Petition ‘hasn’t got too many signatures’

Liberal MP Jane Prentice has attempted to talk down the leadership crisis engulfing the party, and said the petition circulating among MPs “hasn’t got too many signatures on it”.

“I think it had nine signatures a couple of hours ago”.

Rosie Lewis 8.55pm: ‘You’ve all been played beautifully’

Liberal frontbenchers Melissa Price and Alex Hawke said they had not seen a petition.

“I’ve not seen a petition, there’s no partyroom. I think you’ve all been played beautifully,” Ms Price said.

Nationals MP George Christensen said any leadership change needed to “happen and happen quickly”.

“Whatever is going on needs to happen and happen quickly so that we can get on with delivering the massive win we’ve had in energy this week and bringing down power prices,” he said.

Primrose Riordan 8.51pm: Robert unsure of potential spill timing

Queensland MP Stuart Robert said he thought there probably will be another spill but was unsure of the timing.

“I suspect in time we probably will see another one.”

He said the “great thing about democracy” was that everyone could put their name forward for the leadership.

Primrose Riordan 8.46pm: Second spill ‘fake news’

Bert van Manen has labelled talk of a second spill “fake news”.

“I haven’t seen the petition and I’m going to enjoy tonight. A lot of what’s being commentated and what I’ve seen going around at the moment is what I would call “fake news”,” he told journalists leaving the building.

Rosie Lewis 8.38pm: ‘People don’t like going to an early election’

Nationals Queensland MP Ken O’Dowd said if Peter Dutton became prime minister he’d advise him against an early election.

“A lot of preselections haven’t been done in Victoria and places like that for everyone I think, doesn’t matter if you’re Liberal or Nat,” he said.

“The country can’t afford it. People don’t like going to early elections, (former Queensland premier) Campbell Newman found that out.”

Asked if he thought the Liberal Party should stick with Malcolm Turnbull, Mr O’Dowd responded: “It’s up to them. The Liberals can look after themselves, we’ve got enough problems looking after the National Party.”

Rachel Baxendale 8.36pm: Labor’s legal advice over Dutton

Labor legal affairs spokesman Mark Dreyfus has tonight written to Attorney-General Christian Porter, citing advice from Bret Walker SC that Peter Dutton is ineligible to sit in parliament.

The legal advice comes after Mr Porter earlier referred questions over the leadership contender’s eligibility to sit in parliament under Section 44 of the constitution to the Solicitor-General, after being asked to do so by Malcolm Turnbull.

The questions relate to Mr Dutton’s interests in two childcare centres which receive money from the commonwealth to pass on as subsidies to parents.

“The Prime Minister in Question Time today informed the House that neither he nor the government had obtained the advice of the Solicitor-General in relation to the eligibility of the Hon Peter Dutton MP to sit as a Member of the House of Representatives,” Mr Dreyfus said in his letter.

“The National Secretariat of the Australian Labor Party has obtained advice on this question. I enclose a copy of that advice and ask you to forward it to the Solicitor-General for his consideration.”

Mr Dreyfus highlighted Mr Walker SC’s conclusion that: “… in our opinion, Mr Dutton was incapable of being chosen for the 45th Parliament and is not entitled to continue to sit in the 45th Parliament. If this matter were referred to the High Court sitting as the Court of Disputed Returns and if our assumptions are correct there is a reasonable prospect that the Court would make its decision in accordance with this conclusion.”

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Primrose Riordan 8.34pm: Warren Entsch warns against another spill

Warren Entsch has warned his colleagues against bringing on another spill.

“It doesn’t do anything for anybody,” he said.

He said the party needed to get back to working on real issues and stop talking about themselves.

He said he would be “very surprised” if Mathias Cormann would move to

support Peter Dutton.

Rosie Lewis 8.22pm: ‘I’d like to see a Prime Minister finish their term’

Lower house crossbench MP Rebekha Sharkie has refused to say if she would support a Dutton-led Government on issues of confidence and supply.

“I’m just not prepared at this point to speculate. We have a Prime Minister, I think that we have yet again been distracted for much of a week in parliament and really that’s been much of the last two years,” she said.

“Call me old fashioned, I’d like to see a Prime Minister finish their term and at the moment we have Prime Minister Turnbull and I’d like to think when I wake up tomorrow we still have Prime Minister Turnbull.”

Greg Brown 8.14pm: Greg Hunt says he still backs Turnbull

Health Minister Greg Hunt claims Malcolm Turnbull still has his support.

When confronted by media after an event at Parliament House, Mr Hunt said his position did not change since he pledged support for the Prime Minister this afternoon.

“I’ve made a statement in question time today and my position has not changed,” Mr Hunt said.

“The Prime Minister has my support.”

Mr Hunt backed Peter Dutton in yesterday’s challenge and is expected to run as the former home affairs minister’s deputy.

Mr Hunt said he did not know about a petition circulating parliament to bring on a partyroom meeting.

“I haven’t seen anything and I haven’t signed anything and to this moment I’m not aware of it,” Mr Hunt said.

Rachel Baxendale 8.11pm: And what are the bookies saying?

The bookies are backing Peter Dutton to take the leadership from Malcolm Turnbull, with Dutton paying $1.28 to Turnbull’s $8.00

Treasurer Scott Morrison is at $3.00 and deputy Liberal leader Julie Bishop even with the PM at $8.00, while Tony Abbott is an outside chance at $12.00.

Rachel Baxendale 8.08pm: James McGrath resigns again

James McGrath has offered Malcolm Turnbull a devastating assessment of his government’s standing in Queensland.

“The people who have for all their lives counted on us to look after them and their families are now questioning our commitment to them. Our people feel forgotten, ignored and spoken down to. As a Liberal National Party Senator for Queensland, this is an intolerable situation,” Mr McGrath wrote in his letter of resignation.

The Queensland senator has just resigned as Assistant Minister to the Prime Minister for the second time in as many days.

Mr McGrath helped Malcolm Turnbull get the numbers to roll Tony Abbott in 2015, offered to resign yesterday, but the PM did not accept his resignation.

It appears his second attempt has been more successful.

“This evening I met with the Prime Minister to insist my resignation be accepted, which it was,” Senator McGrath posted on Facebook.

“My letter from yesterday to the Prime Minister is below.

“Like Peter Dutton has said, we must do everything in our power to stop Bill Shorten ever becoming prime minister.”

Geoff Chambers 7.58pm: Cormann tells Turnbull he’s lost party room support

Mathias Cormann told Mr Turnbull that he had lost the support of his party room.

Previously Senator Cormann had pledged his personal support for the Prime Minister, and thanked him for making him a Minister.

This comes after Liberal MPs had earlier indicated that Senator Cormann would personally withdraw his support.

Rosie Lewis 7.56pm: Turnbull hasn’t seen petition

A spokesman for chief whip Nola Marino ruled out any chances of a party room meeting being held tonight.

The Australian was told Malcolm Turnbull has no intention of calling a partyroom meeting tonight, even if a petition was brought to him - which it has not.

Primrose Riordan 7.52pm: Molan confirms he voted for Dutton

NSW Senator Jim Molan has publicly said tonight that he believes Peter Dutton is “best placed” to steer the Liberal Party into the right position.

“I want to declare that I voted for Peter Dutton in the contest,” he said on Facebook.

“I believed that Peter Dutton was best placed to bring the party back to a genuine right of centre position. I still do.”

He said he believed he “owed” it to the people of New South Wales to explain why.

“There is a view that the Liberal Party has moved too far to the left over recent years – it is a view that I share.”

“Whilst this government has achieved a great many things, the perception that we have moved too far to the left has resulted in many of our supporters leaving us for cross bench parties. We will not win those good people back by adopting policies that are closer to the Labor Party of the Greens.”

Rosie Lewis 7.34pm: ‘They’re struggling to get 50’

A moderate Liberal MP said they were 95 per cent confident a partyroom meeting wouldn’t happen tonight, and claimed Dutton supporters were “struggling” to get the numbers for the petition.

“They’re struggling to get to 50,” they said.

Simon Benson 7.17pm: Lib MPs call for party room meeting

MPs are calling for a party room to be held tonight.

It is understood a petition is currently being circulated.

Rachel Baxendale 7.13pm: Questions over Dutton referred to Solicitor-General

Attorney-General Christian Porter has issued a statement confirming that he has referred questions over Peter Dutton’s eligibility to sit in parliament under Section 44 of the constitution to the Solicitor-General.

The questions relate to Mr Dutton’s interests in two childcare centres which receive money from the commonwealth to pass on as subsidies to parents.

“Given that today the subject of a Member’s eligibility was raised in Question Time and in media reports, I determined to seek advice from the Solicitor-General on the issues raised,” Mr Porter said in his statement.

“In doing so, I will observe the standard practice that applies to requests from the Attorney-General to the Solicitor-General, which includes not commenting on a matter which is the subject of a request for advice.”

Rachel Baxendale 5.35pm: Abbott points finger at Turnbull

Tony Abbott suggests Malcolm Turnbull may have been behind questions over whether Peter Dutton’s ownership of two Brisbane childcare centres could make him ineligible to sit in parliament under Section 44 of the constitution, claiming it could be “one last throw from a despairing incumbent”.

The former prime minister made the claim during his regular spot on 2GB, with host Ben Fordham.

“One matter I really should comment on, given that this question of Section 44 eligibility of Peter Dutton was raised in the Senate 12 months or so back, and given that there is QC’s advice that he is absolutely in the clear, I just think it was just very strange that today the Prime Minister didn’t simply say that this matter has been considered, there’s QC advice that Peter Dutton’s position is absolutely secure,” Mr Abbott said.

Mr Turnbull today announced that the matter had been referred to the Solicitor-General.

“As I said, I think a lot of people have wondered as this thing has come out over the last couple of days, they’ve thought, ‘look more dirty tricks’,” Mr Abbott said.

“Whether these are more dirty tricks from a Labor Party which is desperate not to have Peter Dutton as its opponent, or whether this is just one last throw from a despairing incumbent, I just don’t know.”

Asked whether he had expected Mr Turnbull to protect his leadership from rival Mr Dutton, Mr Abbott said: “Well look, we’ve all got to do our bit for the team.”

“When you are the team leader, you protect the team, even the people who might be your critics at this time. That’s your job, to protect the team.”

Rachel Baxendale 5.20pm: Abbott: I don’t do deals

Mr Abbott contradicted a Sky News report earlier today that he had been given a “110 per cent assurance” that he would be part of a Dutton cabinet.

“I don’t do deals, Ben. I don’t do deals. I ask for nothing. I expect nothing,” Mr Abbott said.

“Anything that happens, well whatever happens, I’ll do my best to serve.

“As I said, there’s all sorts of rumours that have been going around today, as you’d expect. It’s one of the reasons why this whole thing should be resolved as quickly as possible, and the Prime Minister’s pre-emptive strike certainly didn’t resolve it, but it does need to be resolved once and for all, because until it is rumours will flourish.

“But no, as I said, I don’t do deals. I just do my best to try to serve and I certainly have been made no promises, no commitments.

“I just want to do my best to try to bind up the Liberal Party’s wounds once we’ve put this episode behind us.”

In response to Mr Abbott’s denial of his story, Sky News Political Editor David Speers tweeted: “Interesting! My report was very well sourced. But of course I would never reveal source.”

Rachel Baxendale 5.10pm: ‘Trotted out to damage an opponent’

Mr Abbott dismissed Treasurer Scott Morrison’s claim that Peter Dutton’s proposal to scrap the GST on energy bills would put a $7.5bn hole in the budget.

“One of the things that often happens is that when backbench members of parliament — and let’s not forget that Peter Dutton is now a backbench member of parliament — make suggestions, the Treasurer comes out with all of the resources of the Treasury and tries to blow them to pieces,” Mr Abbott said.

“For instance when I suggested some months ago that we could scale back the rate of immigration, the Treasurer came out with what I thought were completely incredible figures to say that this would cost the budget $5bn.

“Well this argument that somehow you can just, if you cut immigration, you somehow damage the budget, how ridiculous would it be to say, ‘well we can fix the budget problems by just massively ramping up immigration?’

“So this blows a hole in the logic of the Treasurer then, and I’m pretty sceptical of these sorts of things that are just trotted out to damage the opponent of the moment.”

Rachel Baxendale 5pm: ‘A culture of plotting’

Asked whether Mr Turnbull’s decision today to dump company tax cuts for businesses with turnover of more than $50 million and keep the energy supplement, Mr Abbott claimed he did not want to “make a bad situation worse”.

“I suppose the thing that surprised me today was that an economic narrative that had been sustained for months, if not years, was abandoned without any obvious substitute, and I thought that was the disappointing thing about today,” he said.

Mr Abbott said the question of why Mr Turnbull was facing a challenge to his leadership would be speculated on for months and maybe years.

“I suppose the culture of leaking and destabilising started while I was prime minister, in fact it started very early on in my time,” he said.

Malcolm Turnbull was the initial beneficiary of it, but I suppose once this poison takes hold, once people get used to plotting their way to the top, and I’m not saying that Peter Dutton is in any way guilty of this, because he is a very, very, very straight and honourable person, but once the culture of plotting takes hold, people who are beneficiaries first can easily become victims.”

Asked whether there was an element of revenge for the 2015 leadership spill involved, Mr Abbott said it was “absolutely not about me”.

“The point that I’ve always made is that I want to see the era of the political assassin end, but I also want to see the best possible government, and what you’ve seen over the last couple of days is policies withdrawn, but it’s far from clear what’s replacing them, and what I heard from Peter Dutton over the last couple of days is that he is serious about getting power prices down and he doesn’t believe in Labor’s emissions obsession,” Mr Abbott said.

“He’s serious about trying to take the downward pressure off wages, the upward pressure off housing prices and the dreadful pressure on our roads and public transport by scaling back immigration. That’s what I heard from Peter Dutton over the last few days and I think that’s very encouraging.”

Tony Abbott has made his regular appearance on 2GB radio. Picture: Supplied
Tony Abbott has made his regular appearance on 2GB radio. Picture: Supplied

Rachel Baxendale 4.50pm: Abbott ‘no fan’ of Turnbull

Tony Abbott has given his regular weekly interview to Ben Fordham on 2GB, referring repeatedly to Malcolm Turnbull not by name, but as “the incumbent”.

The former PM said he was focused on delivering the best possible government.

“It’s no secret that I’m no big fan of the incumbent, and certainly when he declared the position open yesterday I voted for Peter Dutton, because Peter Dutton has been an outstanding minister, and I’m confident that he could be a very good prime minister. And I know that his values are good, I know that his principles very much resonate with the ordinary man and woman in the Australian street,” Mr Abbott said.

Primrose Riordan 4.45pm: ‘Refer Dutton to High Court’

Labor frontbencher Joel Fitzgibbon has said parliament should refer Peter Dutton to the High Court over his interest in childcare centres and whether this impacts his ability to sit in parliament under the constitution.

“It’s a matter for the Parliament and the Parliament will make the reference and ... I think it should,” he told Sky News.

“It would be safer for the Attorney General to allow the parliament to do its thing and this is an opportunity to show some leadership for a change and do just that.”

Malcolm Turnbull loyalist Craig Laundy has said he thinks Mr Dutton’s legal advice should be made public. “I’d imagine that Peter Dutton would make his advice public,” he said.

The parliamentary register of members’ interests discloses that Mr Dutton, his wife Kirilly and their children are beneficiaries of the RHT Family Trust.

Childcare centres receive subsidies from the commonwealth which are then passed on to parents.

Under section 44(v) of the Constitution, any person with “any direct or indirect pecuniary interest with the Public Service of the Commonwealth” is disqualified from parliament.

While Malcolm Turnbull said he had no reason to believe Mr Dutton was in breach, he shed doubt on the issue by saying he had not seen Mr Dutton’s legal advice and said it was an issue of eligibility.

“The member for Dickson has advised me he has legal advice he is not in breach of section 44 and I have no reason, therefore, to believe that he is,” Mr Turnbull said in Question Time.

“As far as the Solicitor-General is concerned, the matter has only arisen in very recent times, we are not in possession of all of the facts relating to the arrangements between the childcare centre and the member for Dickson’s trust but it is an issue of the eligibility for the member for Dickson, he has legal advice but I have not read it.”

A spokesman for Mr Dutton has previously said the minister has legal advice which “clearly states there is no breach of Section 44”, noting commonwealth money is not paid to childcare centres, but through childcare centres to parents.

4pm: Question Time highlights

What we learned

Today marks the 30th anniversary of the first sitting of parliament in the ‘new’ building.

What the government wanted to spin

Australia needs internationally competitive taxes, despite admitting defeat on big business corporate tax cuts.

What Labor wanted to talk about

Is Peter Dutton constitutionally qualified for parliament?

What they said

“Given that the prime minister is pretending to dump his signature policy to hang on to his job, when are they going to dump you?” — Labor leader Bill Shorten.

“The iron laws of arithmetic dictate we have not been able to get the rest of the plan through the Senate.” — Prime Minister Malcolm Turnbull on his tax cuts plan.

“Does the minister retain enough confidence in the prime minister, his government and its policies to remain as a minister?” — Labor trade spokesman Jason Clare.

“The answer is yes. Let me make it very, very clear — yes, of course there’s confidence. Yes, of course. How much clearer can I make it?” — Trade Minister Steven Ciobo, who reportedly voted for Dutton in a leadership spill.

Tweeted

@GrahamPerrettMP Very helpful of Prime Minister Turnbull to seat Mr Dutton in #QT next to a constitutional lawyer.

3.40pm: Dutton ‘won’t face scrutiny’

Questions over the possibility of Peter Dutton being removed from parliament were adrressed in The Australian today. Read more here

Caroline Overington 3.20pm: How do you sell Peter Dutton as PM?

Peter Dutton can’t stand the opinions of Lefties who will never choose to elect him. Malcolm Turnbull so needed their love. Read more here

Greg Brown 3.10pm: ‘Numbers man’ speaks out

Labor’s Chris Bowen points to reports that Scott Morrison is doing the numbers for his own leadership challenge.

“Does the Treasurer retain enough confidence in the Prime Minister, the government and its policies to remain as Treasurer?”

He says he does but, like the others, he talks up government policy rather than the attributes of Mr Turnbull.

Greg Brown 3.05pm: Dutton’s GST plan cops a hit

In another rare act of QT bipartisanship, Labor’s Chris Bowen invites Scott Morrison to criticise Peter Dutton’s proposal to take the GST off electricity bills.

The Treasurer says the policy would reduce revenue to the states by $7.5 billion over four years.

“That $7.5 billion would either not then go to the states or the commonwealth would have to pay that additional money to the states,” Mr Morrison says.

Greg Brown 3pm: Ciobo keeps it brief

Trade Minister Steven Ciobo — a Peter Dutton backer — manages just one word when asked if he supports Malcolm Turnbull.

“Yes,” Ciobo says. He then goes on to talk up his efforts as Trade Minister, like the other Dutton backers.

Bill Shorten interjects: “Say something nice about him”.

Greg Brown 2.55pm: Tudge won’t budge

Now it is Citizenship Minister Alan Tudge’s turn to proclaim his support for Malcolm Turnbull, despite backing Peter Dutton in yesterday’s spill.

“I have given the Prime Minister my assurance that he has my support,” Mr Tudge says, leading to raucous laughter from the opposition benches.

Greg Brown 2.50pm: ‘There is an alternative’

Labor’s Clare O’Neil asks Cyber Security Minister Angus Taylor if he supports the leadership of Malcolm Turnbull.

Mr Taylor — a Peter Dutton backer — responds “yes I do” but does not elaborate on the Prime Minister’s positive qualities.

He instead talks up the work he has done in his portfolio. He then says “there is an alternative”, which is leapt on by Labor MPs who point over to Mr Dutton.

“Over there,” Labor’s Terri Butler says.

Peter Dutton in Question Time. Picture: Kym Smith
Peter Dutton in Question Time. Picture: Kym Smith

Greg Brown 2.45pm: PM hasn’t seen Dutton’s legal advice

Bill Shorten goes again on Peter Dutton’s eligibility concerns, asking Malcolm Turnbull if he has seen the legal advice saying the former home affairs minister is not in breach of the constitution.

The Prime Minister says he has not seen the advice. “(Dutton) has confirmed to me he has legal advice but I have not seen it, I have not been provided with a copy of it,” Mr Turnbull says.

Greg Brown 2.40pm: A tempting proposition?

Bill Shorten asks if Malcolm Turnbull will refer Peter Dutton to the High Court because of concerns he has contravened section 44 of the constitution.

The Prime Minister is probably tempted, but he instead goes on to attack the Opposition Leader.

Mr Dutton was on the backbench laughing at Mr Turnbull’s joke saying, “that’s right”. It has all of the sudden become collegial in the Liberal ranks.

“We all remember (Shorten’s) rolled gold guarantee about his dual citizen MPs and how they were able to sit in the parliament,” Mr Turnbull says.

“The member for Dickson has advised me he has legal advice he is not in breach of section 44 and I have no reason, therefore, to believe that he is.”

Greg Brown 2.35pm: Probing continues

Another backer of Peter Dutton gets grilled. Labor’s Ed Husic asks Human Services Minister Michael Keenan if he continues to support Malcolm Turnbull.

Mr Keenan says “yes” but that is about it. He goes on to talk up all his work in the portfolio.

Greg Brown 2.30pm: Advice on Dutton ‘not sought’

Malcolm Turnbull updates the house on questions of Peter Dutton’s eligibility to sit in parliament, due to concerns about contravening section 44 of the constitution.

The Prime Minister says legal advice has not been sought.

“I’m advised by the Attorney-General that advice has not been sought from the Solicitor-General,” Mr Turnbull says.

Greg Brown 2.25pm: ‘I support the Prime Minister’

Opposition health spokeswoman Catherine King asks Greg Hunt if he supports Malcolm Turnbull.

Mr Hunt — who backed Peter Dutton in yesterday’s leadership challenge — goes on to talk up the record of the government, but not so much the Prime Minister.

He is pulled up by Labor on not answering the question. Mr Hunt responds: “I do support the Prime Minister, so let me be absolutely clear”.

Greg Brown 2.20pm: Dethroned King in attendance

Labor MPs get a laugh when Speaker Tony Smith acknowledges former Liberal MP Peter King is in the public gallery.

Malcolm Turnbull successfully challenged Mr King for the seat of Wentworth in 2004, when he was a sitting member.

The irony.

Malcolm Turnbull in Question Time today. Picture: Kym Smith
Malcolm Turnbull in Question Time today. Picture: Kym Smith

Greg Brown 2.15pm: Labor continues its attack

Labor goes again on allegations Peter Dutton could be ineligible to sit in parliament because a fund he owns has a stake in childcare centres that received government subsidies.

Opposition legal affairs spokesman Mark Dreyfus asks Malcolm Turnbull if he has sought advice from the government’s lawyer about whether Dutton is eligible to sit in parliament.

The Prime Minister again takes it on notice.

“On matters of this kind, I take particular care, I will take that on notice and respond later in question time,” he says.

Greg Brown 2.10pm: Attention turns to Dutton

Labor must think Peter Dutton is odds on to take the leadership.

Manager of Opposition Business Tony Burke throws Malcolm Turnbull a bone and asks about Dutton’s alleged stake in childcare centres that receive funds from government.

“Did he excuse himself from Turnbull government discussions on childcare?”

The Prime Minister took it on notice. “I will get advice from the cabinet secretary and I will report back to the House as soon as I have it,” Mr Turnbull says.

Greg Brown 2.05pm: Shorten stirs the pot

Bill Shorten opens Question Time on the government dumping company tax cuts -- with a hint of leadership niggle added in.

“Given that the Prime Minister is pretending to dump his signature policy to hang on to his job, when are they going to dump you?”

Malcolm Turnbull manages to make a bit of a joke about the “iron laws of arithmetic”, which he used to reference the security of his leadership in a press conference this afternoon.

“The reality is the iron laws of arithmetic, which everyone pays attention to here - I’m glad you woke up, you were half asleep,” the Prime Minister tells laughing Labor MPs.

“The iron laws of arithmetic dictate we have not been able to get the rest of the plan through the Senate, we do not foresee any change in public sentiment on this matter and, accordingly, we will not be taking the larger company tax cuts policy to the next election.”

Primrose Riordan 1.55pm: Blast from the border protection past

The leadership drama is bringing tensions which have simmered below the surface to the fore. Peter Dutton has come under attack from former Border Force Commissioner Roman Quaedvlieg.

Mr Quaedvlieg suggests on Twitter that he is “furious” over media reports about Mr Dutton’s interests in two Brisbane childcare centres after he was sacked over allegations he did not properly declare a personal relationship.

Meanwhile, former International Development Minister Concetta Fierravanti-Wells has accused Julie Bishop of hanging her out to dry after she accused China of forcing Pacific Island nations into unsustainable debt.

Fierravanti-Wells was asked by the ABC: “your accusation is that you eventually left hung out to dry by the party leadership and the Foreign Minister?”

She replied: “That was the perception and that was my view, and that was the perception of some of my colleagues”.

Greg Brown 1.40pm: Shifting support ‘hypothetical’

Finance Minister Mathias Cormann would not rule out shifting his support from Malcolm Turnbull as the Prime Minister declared the “iron laws of arithmetic” were in favour of him remaining leader.

Senator Cormann, a key conservative whose support for Mr Turnbull is critical, said questions about shifting support for Peter Dutton to lead the Liberal Party were “hypothetical”.

“I was very grateful when Malcolm invited me to serve in his cabinet in September 2015. I’ve served Malcolm loyally ever since, and I will continue to serve him loyally into the future,” Senator Cormann said.

Mr Turnbull said he did not think there would be another leadership ballot this week, despite Mr Dutton indicating this morning he would mount another challenge if he got the numbers.

“We had a ballot earlier this week …yesterday, in fact. The iron laws of arithmetic confirmed my leadership of the Liberal Party,” Mr Turnbull said.

Scott Morrison played down questions of his own leadership ambitions.

“Me? (Mr Turnbull) is my leader and I am ambitous for him,” the Treasurer said, putting his arm around Mr Turnbull’s shoulder.

Mr Turnbull rejected Mr Dutton’s proposal for the GST to be axed from energy bills, arguing the money for hospitals and schools would have to be raised elsewhere.

“One of the many wicked problems we’ve dealt with in recent times is the inequitable distribution of the GST to Western Australia,” he said.

“In order to make that work, we have had to contribute a substantial amount, in the order of about $1 billion a year, from existing other federal revenues to the GST pool.”

Mathias Cormann, Malcolm Turnbull and Scott Morrison hold a press conference. Picture: Kym Smith
Mathias Cormann, Malcolm Turnbull and Scott Morrison hold a press conference. Picture: Kym Smith

1.25pm: Cormann, Morrison’s show of support

Mathias Cormann and Scott Morrison both pledged loyalty to Malcolm Turnbull during their press conference, in a strong signal to Peter Dutton. Mr Morrison put his arm around Mr Turnbull’s shoulder and said: “He is my leader and I am ambitious for him.”

Mr Cormann added that he would continue to serve the PM loyally.

Eli Greenblat 1.20pm: Tax cuts failure ‘incredibly disappointing’

Chief executive of Coca-Cola Amatil, Alison Watkins, has labelled the collapse of business tax cuts and the demise of the Turnbull Government’s National Energy Guarantee as “incredibly disappointing” and called on Federal politicians in Canberra to “sort out” the growing leadership mess so they can get on with governing the country.

Ms Watkins has echoed the increasing frustration and anger of the Australian business community as they watch on in a mix of horror and disbelief at the political turmoil in the nation’s capital that this morning saw the Federal Government’s company tax cuts fail to pass the Senate and earlier this week the much-awaited NEG disintegrate.

Further earning the ire of business leaders is the political instability of the last 24 hours that has seen Government ministers and backbenchers locked in a battle to topple Prime Minister Malcom Turnbull, with that instability showing no signs of abating.

“It is really disappointing,’’ Ms Watkins told The Australian this afternoon.

“There is no doubt about that, I think business needs certainty and both the company tax rates and the NEG I think were examples of opportunities that we really had that would have been very positive for our economy and for future growth prospects for the country.’’

Greg Brown 1.10pm: PM dumps business tax cuts

Malcolm Turnbull has dumped big business tax cuts after they failed to pass the parliament.

The Prime Minister said the political climate had forced the government to walk away from tax relief for companies with a turnover of more than $50 million.

He said the government would consider accelerating tax cuts for small businesses.

“We will not be taking the tax cuts for larger companies to the next election,” Mr Turnbull said.

“We are going to review our enterprise tax plan in so far as it applies to small and medium businesses and focus on how we can provide enhanced support, or perhaps an acceleration of the tax cuts for the small and medium businesses.”

Mr Turnbull announced the government would no longer seek to repeal the energy supplement.

Geoff Chambers 12.52pm: PM to speak to media

Malcolm Turnbull, Mathias Cormann and Scott Morrison are holding a press conference at 1pm on company tax cuts.

Joe Kelly 12.50pm: Anderson - PM must do what’s right

Former Deputy Prime Minister John Anderson has raised the prospect of Malcolm Turnbull standing down because Australia’s political system was now “at risk”.

The Former Nationals Leader earlier this year suggested Barnaby Joyce stand down over the political crisis triggered by his affair with a former staffer.

The suggestion from Mr Anderson comes amid chaos in government ranks over the leadership and revelations the Governor-General Peter Cosgrove has delayed plans to leave Canberra.

“I think we’ve reached a point in Australian history where every single one of us from the Prime Minister down needs to ask what he or she should do -- not what they want to do,” Mr Anderson told The Australian.

“From the Prime Minister down the only priority now should be how can I best serve the country. All of us need to recognise that if we cannot restore trust in the system our way of life is at risk”.

Read the story in full here.

Greg Brown 12.42pm: Cormann goes into PM’s office

Key conservative Mathias Cormann sent tongues wagging when he went into Malcolm Turnbull’s office.

But the Prime Minister’s office say the meeting was about the Senate blocking big business tax cuts.

Mr Turnbull and Senator Cormann are expected to do a press conference on the company tax issue later this afternoon.

Senator Cormann backed Mr Turnbull is yesterday’s challenge and his support is said to be critical for the Prime Minister..

12.40pm: Abbott ‘assured of Dutton cabinet spot’

Sky News is reporting that Tony Abbott has been assured he will be included in a potential Peter Dutton cabinet.

Ewin Hannan 12.35pm: DPP mulls raid leak charges

The Commonwealth Director of Public Prosecutions is considering whether to lay charges over leaks from Michaelia Cash’s office about raids on union offices after receiving a complete brief of evidence from the Australian Federal Police.

Read the story in full here.

Greg Brown 12.25pm: Nats divided on Dutton policies

Nationals senator John ‘Wacka’ Williams says he would have no problem with Peter Dutton’s policies of exempting the GST from power bills and establishing a royal commission into energy companies.

“I was a big supporter of a royal commission into the banks and look at what is coming out of that,” Senator Williams says.

But fellow Nationals MP David Gillespie, the Assistant Families Minister, said the proposal was “going nowhere”.

“That is not government policy at the moment and I don’t think the states would like missing out on GST,” Mr Gillespie.

“Always welcome new ideas but at the moment that is going nowhere.”

Richard Ferguson 12.08pm: Vic Libs back Turnbull

Peter Dutton has pushed his tough-on-crime stance on Melbourne airwaves today but he is still to win over Victoria’s Liberal leader, who is continuing to back Malcolm Turnbull.

Victoria’s Liberal leader Matthew Guy told reporters outside state parliament today he still wanted Malcolm Turnbull to remain as Prime Minister and that he wanted to campaign with him.

“The Prime Minister, Malcolm Turnbull, will be a part of my campaign,” he said.

Read the story in full here.

12.04pm: Morrison denies doing the numbers

Scott Morrison has denied claims that he is doing the numbers to challenge the Prime Minister. Mr Morrison told Sky News: “The Prime Minister has my full and total support and I want to put to rest any suggestion that an approach has been made.”

11.55am: Second spill before QT?

There is growing speculation that Malcolm Turnbull will face another spill before question time.

Greg Brown 11.51am: ‘All over’ for Turnbull

Australian Conservatives leader Cory Bernardi has declared it is “all over” for Malcolm Turnbull, believing a leadership change would happen today or tomorrow.

“The transaction cost is going to be enormous for the Liberal Party and for the country,” Senator Bernardi told Sky News.

“This is a rerun of exactly what Labor did, I would like to see the Liberal Party get back to a stronger, firmer foundation and direction but it is not going to end well for them.”

Greg Brown 11.50am: ‘Bring your abacus’

As leadership questions dominated a press conference with Julie Bishop and her New Zealand counterpart, the Foreign Minister attempted a swift exit.

But NZ Deputy Prime Minister Winston Peters was not yet done, and refused to go with Ms Bishop, instead continuing to take questions.

Ms Bishop was forced to turn around and go back to her podium.

Mr Peters finished by offering some advice to Liberal MPs: “can I just say as a politician, when you go into a spill you have to bring your abacus”.

Greg Brown 11.40am: ‘Nobody beyond redemption’

New Zealand Deputy Prime Minister Winston Peters says “nobody is beyond redemption” on the prospect of dealing with Peter Dutton as Australia’s leader.

Mr Peters said he would not wade into domestic politics but indicated Mr Dutton’s hardline approach on deporting New Zealand-born criminals would not get in the way of the Trans-Tasman relations.

“Given our shared history in terms of our backgrounds in democracy and the rule of law, is that nobody is beyond redemption, that is the approach we take from New Zealand,” Mr Peters said in a press conference with Foreign Minister Julie Bishop.

Winston Peters during a bilateral meeting with Julie Bishop. Picture: AAP.
Winston Peters during a bilateral meeting with Julie Bishop. Picture: AAP.

Rosie Lewis 11.33am: G-G decides to stay in Canberra

Governor-General Sir Peter Cosgrove was due to be out of Canberra tomorrow but The Australian has been told he thought it “prudent” to stay in the nation’s capital.

Sir Peter’s change of plans reveal there are expectations he may be called upon.

Malcolm Turnbull will need to go to the Governor-General to swear-in any new ministers.

Sir Peter’s services would also be required if the prime minister - be it Mr Turnbull, Mr Dutton or someone else - decided to call an early election.

Governor General, General Sir Peter Cosgrove has changes his plans so he can remain in Canberra tomorrow.
Governor General, General Sir Peter Cosgrove has changes his plans so he can remain in Canberra tomorrow.

Ben Packham 11.30am: ‘Act in line with caretaker conventions’

Labor has called on Malcolm Turnbull to act in line with caretaker conventions, due to uncertainty over the prime ministership and the potential for an election “in the very short term”.

Bill Shorten wrote to the Prime Minister detailing the request this morning, urging Mr Turnbull to “immediately cease taking any actions that may bind the decisions of an incoming government, in line with caretaker conventions”.

“Out of respect for the Australian people, such a pause should continue until the leadership of the Coalition government is satisfactorily resolved or a general election is called, at which point normal caretaker conventions would commence,” the Opposition Leader wrote.

He said this would preclude major policy decisions that would commit an incoming government, significant appointments, entering into major contracts, or major commitments in the international sphere.

“Should circumstances exist where there is a clear case that such a decision or appointment should be made in the national interest, I ask that the opposition be consulted before any such action is taken,” Mr Shorten said.

The move followed Communications Minister Mitch Fifield’s announcement of new a NBN CEO, Stephen Rue.

Opposition communications spokesman Michelle Rowland said: “Labor does not consider the appointment of a permanent NBN CEO this close to the election to be appropriate, particularly given the dysfunctional state of the Turnbull Government.

“We have made our view clear that the appointment of the CEO should have been an interim one.”

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Rachel Baxendale 11.06am: Morrison speaks

Scott Morrison has been stopped in the corridor following his launch of the first comprehensive national report on multiple sclerosis, declaring he is focused on a “stronger economy to help people”, rather than “the sort of nonsense we have been seeing lately”, in an apparent reference to the leadership spill. The Treasurer has previously highlighted his brother-in-law’s battle with the degenerative disease, and today said it was the kind of issue that fires him up to go to work every day. “The sort of nonsense we have been seeing lately, that is what puts all of that stuff at risk,” said Mr Morrison, who yesterday voted for Malcolm Turnbull. “I think it is timely that I make these remarks after the ones I have just made.

“It should be to remind everyone in this place about what this place is about.

“We want a stronger economy to help people, that is what I’m focused on, nothing else.”

Greg Brown 11.00am: ‘Crazy thought bubble’

Opposition treasury spokesman Chris Bowen has described Peter Dutton’s plan to take the GST off electricity bills as a “crazy thought bubble”.

Mr Bowen said it would cost the budget $30 billion over the next decade and lead to a cost in essential services, such as health funding.

“Mr Dutton needs to explain the costs involved with putting in place a bureaucratic infrastructure to work out who is and isn’t exempt from the GST and how it would be implemented,” Mr Bowen said in a joint statement with opposition health spokeswoman Catherine King.

Rosie Lewis 10.55am: Tax cut plan fails

The Turnbull government’s remaining company tax cuts for big business – a key plank of its signature enterprise tax plan – has been defeated in the Senate.

One Nation, Centre Alliance, Victorian Derryn Hinch and South Australian Tim Storer sided with Labor and the Greens to reject the tax cuts for businesses with an annual turnover of more than $50 million.

Read the story in full here.

Derryn Hinch sided with Labor and the Greens to reject tax cuts. Picture: AAP.
Derryn Hinch sided with Labor and the Greens to reject tax cuts. Picture: AAP.

Greg Brown 10.50am: Shorten pro Dutton energy inquiry

Bill Shorten says he is pleased Peter Dutton has raised the prospect of a royal commission into electricity companies.

While not offering explicit support for the proposal, the Opposition Leader said it was up to the energy companies to demonstrate why there should not be a royal commission into the sector.

“We’ve never been afraid to use royal commissions to go after and monitor the big end of town,” Mr Shorten said.

“We’ve led on tackling the banks and it’s up to the energy companies now to demonstrate why there shouldn’t be that sort of powerful inquiry into their conditions and I’m pleased that Peter Dutton is raising some of the same issues we are.”

Rosie Lewis 10.45am: Hinch tax amendment defeated

Derryn Hinch’s amendment to set a threshold so only companies with an annual turnover of up to $500 million receive lower tax rates has been defeated 30 - 36. Expect a voting down of the remaining tax cuts any minute.

10.40am: Uncertainty weighs on market

Political uncertainty continues to weigh on the Australian sharemarket after yesterday’s attempted Liberal Party leadership spill.

The index is currently down 0.6pc at a 1-week low of 6249, on track for a 1.6pc fall in two days.

Falls are broad-based with all sectors down bar Telcos and Information Technology.

Telstra is up 1.5pc on TPG-Vodaphone merger talks, while Altium is up 24pc on strong results.

Heavyweight resources, banks, healthcare and consumer staples are doing most of the damage.

BHP falls 1.4pc to a 3-month low of $32.06 as analysts trim price targets after yesterday’s results.

Major banks are down 0.7-1.1pc with CBA weakest as it catches up yesterday’s slide in banks.

Greg Brown 10.38am: Payne replaces Fierravanti-Wells

Malcolm Turnbull has formally accepted the resignation of former international development minister Concetta Fierravanti-Wells.

Senator Fierravanti-Wells will be temporarily replaced by Defence Minister Marise Payne.

Senator Fierravanti-Wells did not know this morning if her resignation had been accepted because she had not spoken to the Prime Minister.

On ABC radio this morning, she defended her decision to vote against Mr Turnbull, arguing the Liberal Party was “bleeding from the Right”.

“We have seen votes walking away from the Liberal Party, we are not bleeding from the Left, we are bleeding from the Right and that is because our conservative base is walking away from us,” Senator Fierravanti-Wells said.

“They don’t want to support us, they don’t want to hand out how to votes for us, they don’t want to do the most important things that are vitally important for us to win an election.”

Concetta Fierravanti-Wells will be replaced by Marise Payne. Picture: AAP.
Concetta Fierravanti-Wells will be replaced by Marise Payne. Picture: AAP.

Primrose Riordan 10.30am: Dutton ‘will cut migration further’

Laying out his populist policies this morning, Peter Dutton also reiterated that immigration will be a major plank of his pitch for leadership and said he wants to cut immigration further on 3AW radio this morning.

“I think we do have to cut the numbers (of migration) back, I haven’t got a number to give to you today ,” Mr Dutton said.

“I think immigration is incredibly important to our country I think it needs to be operating in our country’s best interests”.

Peter Dutton arrives for Question Time Picture Kym Smith.
Peter Dutton arrives for Question Time Picture Kym Smith.

Simon Benson 10.22am: Morrison backers doing the numbers

A number of MPs have confirmed that Ben Morton and Alex Hawke are now openly doing the numbers for Treasurer Scott Morrison. Sources close to Mr Morrison said the Treasurer was loyal to Mr Turnbull and he had no intention of challenging the Prime Minister.

Scott Morrison and Malcolm Turnbull arrive for Question Time on Tuesday. Picture: Kym Smith.
Scott Morrison and Malcolm Turnbull arrive for Question Time on Tuesday. Picture: Kym Smith.

Rosie Lewis 10.20am: ‘You are all over the place’

A political brawl has erupted in the Senate after Labor and the Greens joined with key Senate crossbenchers to vote down an amendment to the government’s remaining company tax cuts that would have excluded the big four banks from receiving the lower tax rate.

Finance Minister Mathias Cormann said Bill Shorten’s “latest lie” was that he was opposed to tax cuts for the big banks.

“Every Labor senator in this chamber just voted in favour of tax cuts for the big banks so you are now in favour of tax cuts for the big banks instead of more money for hospitals, more money for schools,” Senator Cormann declared.

“You are all over the place, you are absolutely all over the place, like nobody can trust a single word that Bill Shorten has to say on anything. He lies about Mediscare, he lied about the citizenship status of his own MPs … Today the Labor Party has failed a test of character.

“Having campaigned supposedly against tax cuts for the big banks, every single Labor senator today voted in favour of tax cuts for the big banks. The people of Australia can form their own judgements.”

Labor senator Doug Cameron lashed Senator Cormann’s “performance”, telling the chamber: “We know it’s not been a good week for the Coalition but this really puts the icing on the cake.

“This is a leader in this place who has actually argued for tax cuts for the banks, has argued against a royal commission on the banks, who has supported the banks all the way along. And now because this government are in so much trouble, are in terminal decline, and we understand that Senator Cormann is committed, this is Senator Cormann’s signature economic policy and it’s down the drain like this government.

“This is a bad week for the Australian public because this government is collapsing and we need a government that can actually decent economic policies, decent financial policies and look after working people.”

Mathias Cormann in the Senate Chamber. Picture Kym Smith
Mathias Cormann in the Senate Chamber. Picture Kym Smith

Elias Viscontay 10.18am: ‘Election if Dutton becomes PM’

Christopher Pyne has warned his government is on the “precipice” of an early election if Peter Dutton becomes Prime Minister, in a joint interview with Anthony Albanese this morning.

“I think my government is skating close to the precipice and I think my colleagues need to understand that”

“We have three colleagues who’ve indicated they’ll sit on the cross benches if Peter Dutton becomes the prime minister and in that situation we could well be at an election in a matter of weeks.

“People need to really take stock of the destruction that they are wreaking on the government”

Pyne made the comments during a joint interview Anthony Albanese on FiveAA radio, where they condemned the culture of political leadership challenges.

Pyne, the Minister of Defence Industry, also said that Malcolm Turnbull’s position had “strengthened not weakened since yesterday’s votes.”

“A number of people who voted for Peter Dutton have indicated to the Prime Minister in writing that they will support Malcolm Turnbull and not support another spill motion,”

“Malcolm Turnbull is the Prime Minister. I support him, the majority of the party room supports him, the public want him to stay”

“If he wasn’t being attacked from within his own side I think we’d be in a much better position.”

“Instability will see Bill Shorten as the prime minister of Australia, and potentially very soon”

Asked if he would sit on a front bench under a Peter Dutton led government, Pyne said:

“I don’t believe that there will be a change of leader. I believe Malcolm Turnbull will lead us to the next election...I am a loyal member of his cabinet”

Anthony Albanese said: “The mistake of the 23rd of June 2010 where people woke up the next morning and saw that there was a different prime minister...that changed politics in this country.”

“The form of politics that we’ve descended to at the moment is a huge problem.”

“We need to do better, the Coalition and the Labor Party”.

Christopher Pyne arrives at yeserday’s partyroom meeting. Picture: AAP.
Christopher Pyne arrives at yeserday’s partyroom meeting. Picture: AAP.

10.05am: PM ‘part of Vic Lib campaign’

Malcolm Turnbull will be a part of the state Liberals’ election campaign, Victorian leader Matthew Guy insists.

Mr Guy said he supported Mr Turnbull and he would be on hand for the November 24 election effort.

“The Prime Minister, Malcolm Turnbull, will be a part of my campaign,” Mr Guy told reporters at parliament.

AAP

Rosie Lewis 10.00am: Big four carve out defeated

The government’s amendment to carve out the big banks from the remaining company tax cuts - a last-ditch proposal designed to get enough crossbenchers on board to support the lower tax rate for big business - has been defeated in the Senate.

The amendment was rejected 38 - 34. One Nation, Centre Alliance and Tim Storer voted with the Greens and Labor against the banks carve out.

Finance Minister Mathias Cormann takes the stand to declare: “The Labor Party just voted in favour of tax cuts for big banks.”

Primrose Riordan 9.52am: ‘Stop navel gazing’

Small Business Minister and Malcolm Turnbull supporter Craig Laundy has suggested the Prime Minister is considering wider changes to policy to placate those who supported Peter Dutton.

“If it’s backbenchers talking to the Prime Minister about policy positions they are concerned with which has been going on in the last 24 hours...plus policy development off the back of it working out if there is a required change to setting what are they are how dowe work through them,” he said.

Asked what policies Mr Turnbull and his ministers were being lobbied about he pointed to tax cuts and Catholic school funding.

Mr Laundy said the party needed to unite and “stop navel gazing”.

Minister for Small Business Craig Laundy. Picture: AAP.
Minister for Small Business Craig Laundy. Picture: AAP.

Greg Brown 9.50am: Dutton - I’m working the phones

Peter Dutton has admitted he is working the phones to gain the numbers to defeat Malcolm Turnbull in a leadership ballot.

The former home affairs minister said he would consider challenging the Prime Minister again if he had the support from a majority of his colleagues. He has also called for a dumping of big business tax cuts and instead give more relief to small business.

“I need to continue to talk to colleagues because I want to talk to them about the ways in which I think we can beat Bill Shorten at the next election,” Mr Dutton told Radio 3AW.

“You don’t go into a ballot believing you can lose and if I believe that a majority of colleagues support me then I would consider my position, that is being very honest and upfront.

“I’m speaking to colleagues, I’m not going to beat around the bush with that, I’m happy to be honest and say yes I am talking to colleagues, colleagues are talking to me and that is the reality.

“The judgement needs to be: what puts us in the best position to beat Bill Shorten? And I believe, as I said yesterday, that I have ideas and a vision for Australia ..I believe that I have got the experience to defeat Bill Shorten.”

Mr Dutton said he did not think there was any prospect of big business tax cuts getting through the Senate and believed it would be a mistake to campaign on them at the next election.

“I would support that money being applied either to households or to a tax cut for small or micro businesses to allow them to grow,” he said.

9.45am: Dutton trails PM as preferred leader

An online poll of 240,000 unique readers across the News Corp network reveals that Peter Dutton polls well below Malcolm Turnbull, and Julie Bishop as preferred Liberal leader. Mr Turnbull polls 32 per cent of voters compared with Mr Dutton’s 12 per cent. Just 18 per cent of readers prefer Tony Abbott; 5 per cent Scott Morrison and 3 per cent Christopher Pyne.

Ben Packham 9.42am: Dutton policies ‘would cost $31.2bn’

Peter Dutton’s proposal to cut the GST on electricity prices would cost the states about $31.2 billion in lost revenue over a decade, according to an analysis by the Parliament Budget Office.

The PBO costed the policy option in August 2017 for Liberal Democrat Senator Leyonhjelm, finding the states would lose about $7.3 billion over four years to 2020-21, and $31.2 billion by 2027-28.

The analysis showed the Commonwealth would save about $1.4 billion over a decade from the move, because it would moderate CPI increases which in turn would lower indexed welfare payment rises.

Rosie Lewis 9.40am: Dutton allies ‘now back PM’

Deputy Liberal leader Julie Bishop claims a number of ministers who voted for Peter Dutton in yesterday’s leadership ballot have now offered to back Malcolm Turnbull.

“The Prime Minister was endorsed by a majority of the partyroom yesterday and now a number of those who didn’t vote for him have offered to back him and I know that the Prime Minister is working to keep the party united,” she told ABC radio.

Radio National Breakfast host Fran Kelly pointed out offering to stay in the ministry was not the same thing as offering to vote for Mr Turnbull in another leadership contest.

Ms Bishop responded: “My understanding is they’re offering to back the Prime Minister and stay in the ministry.”

The most senior Liberal woman refused to say if she would quit politics if Mr Dutton became leader.

“I don’t envisage that happening. I have been working with the Prime Minister and I have seen that a number of people who voted for Peter Dutton have in fact offered their resignations to the Prime Minister and they’ve done the right thing but the Prime Minister has said that he wants them to remain in the ministry and I understand that a number of them have agreed to do so and back Malcolm Turnbull,” she said.

Julie Bishop with Malcolm Turnbull yesterday. Picture Kym Smith
Julie Bishop with Malcolm Turnbull yesterday. Picture Kym Smith

9.20am: Morrison ‘attempting to run with Dutton as deputy’

Ray Hadley has revealed on Radio 2GB that Scott Morrison is planning to run against Malcolm Turnbull and is attempting to put a ticket together with Peter Dutton with Mr Dutton as his deputy.

Elias Visontay 9.15am: ‘We’re watching everyone fight’

Opposition leader Bill Shorten has described the Liberal party’s leadership challenge as “madness”

“We are just watching everybody just fight each other.”

“I have led the Opposition for five years and I have never seen such an outpouring of bitterness. No wonder people hate politics. I think this is hurting the reputation of politics in this country and that is deeply disturbing.

“There is a lot of the pot calling the kettle back here in relation to your own party. You’ve done it before, you did it, you were a part of it, you did exactly what they are doing now?

Appearing on Channel Nine’s Today, Shorten acknowledged Labor’s history with leadership challenges.

“We have learned our lesson. I never thought that I would be the leader of a political party, the longest leader of a political party since John Howard.”

“What I want at the next election is a contested poll.”

8.42am: Bishop denies threatening to quit

Julie Bishop has denied she threatened to quit politics to strip the government of a majority if Peter Dutton took over as PM. “I’ve never made that threat to anyone,” she told ABC radio this morning.

But the Foreign Minister downplayed the possibility of a Dutton premierhsip, saying a number of people who voted against Malcolm Turnbull have now reconsidered their position.

Greg Brown 8.35am: Dutton lays out populist policies

Peter Dutton says the GST should be taken off electricity bills and has called for a royal commission into energy and fuel companies.

The former home affairs minister, who is expected to again challenge Malcolm Turnbull for the prime ministership, laid out populist policies this morning on Triple M Melbourne.

“I think one thing that we could do straight away in this next billing cycle is take the GST off electricity bills for families,” Mr Dutton said.

“It would be an automatic reduction of 10 per cent for electricity bills and people would feel an impact straight away.”

He also called for a royal commission into the sector, something that has been called for from the Greens and several Coalition MPs, including Barnaby Joyce.

“The other thing we could do is set up a royal commission into the electricity companies and into the fuel companies,” Mr Dutton said.

“I just think Australian consumers for way too long have been paying way too much for fuel and for electricity and something just isn’t right with these companies.

“Like we have done with the banks, I think a royal commission has the ability to get to the bottom of what is fundamentally wrong with the system and what could help ease some of that pressure on families and potentially small businesses.”

Peter Dutton in Question Time. Picture: Kym Smith.
Peter Dutton in Question Time. Picture: Kym Smith.

Mr Dutton took a swipe at Malcolm Turnbull’s messaging, declaring people did not understand what the government stands for.

“We need to be very clear and succinct about our message, about our policy ideas, about our vision for the country,” Mr Dutton said.

“And at the moment I think people are struggling to understand what it is that the government stands for and we need to be very clear about the sorts of things I have spoken about.”

He said the government needed to do more to bring water to regional areas in drought.

“The drought that is taking place at the moment is the equivalent of a great depression for these farmers and it is devastating to watch the livestock perish,” Mr Dutton said.

Greg Brown 7.45am: Hunt, Tudge offered resignation

Health Minister Greg Hunt and Citizenship Minister Alan Tudge last night offered their resignations after voting for Peter Dutton in the leadership ballot, with 10 frontbenchers now confirmed as offering to quit the Prime Minister’s team.

The Australian has confirmed Mr Hunt and Mr Tudge offered to resign from the ministry but the Prime Minister told both they could stay in their portfolios.

Other frontbenchers who voted for Mr Dutton are: Michael Keenan, Steven Ciobo, Angus Taylor, Zed Seselja, Michael Sukkar, James McGrath and Concetta Fierravanti-Wells.

Minister for Health Greg Hunt  offered to resign.  Picture: AAP.
Minister for Health Greg Hunt offered to resign. Picture: AAP.

Greg Brown 7.41am: ‘Dead man walking’

Crossbench senator Derryn Hinch has labelled Malcolm Turnbull a “dead man walking”.

“Hinch’s hunch always was that Malcolm Turnbull would lead the Libs to the next election, and I think that he should still lead the Libs to the next election,” Senator Hinch told the ABC.

“But the night before last, I was in my office and I turned to my staff and said: ‘I’ve never said this before, but I don’t think he’s going to’.

“Now he’s a dead man walking.”

Greg Brown 7.40am: Joyce’s warning to Chester

Barnaby Joyce has warned Veterans Affairs Minister Darren Chester against leaving the government if Peter Dutton becomes prime minister.

“We have to remember first and foremost our role is to our preselectors, to the people back in our branches and (we’ve) got to ask what did they vote for? They voted you to be part of the National Party..and to be part of the government,” the former deputy prime minister told the ABC.

Mr Joyce said he did not expect to come back as Nationals leader.

“I also said if I’m offered an office, and I’m not touting for one and none has been offered, I’ll take it, because that is your responsibility,” he said.

Barnaby Joyce in the House of Representatives. Picture: Ray Strange.
Barnaby Joyce in the House of Representatives. Picture: Ray Strange.

Greg Brown 7.30am: PM ‘let genie out of bottle’

Liberal MP Craig Kelly has blamed Malcolm Turnbull for the leadership instability in the government, declaring it was the Prime Minister who “let the genie out of the bottle”.

Mr Kelly – who yesterday told The Australian he backed Mr Turnbull in the ballot before later confessing he actually voted for Peter Dutton – claimed there had been no phone calls made to garner support for the challenge.

He indicated his belief another challenge was likely.

“Once you take the genie out of the bottle, it’s very hard to put it back in, and the Prime Minister let the genie out of the bottle yesterday by declaring the spill,” Mr Kelly told the ABC.

“I hoped this was something that we could have put behind us and moved on, but with all those ministerial resignations last night, it’s difficult to know where this is actually going to go today.”

Greg Brown 7.15am: ‘All options on the table’

Veterans Affairs Minister Darren Chester has refused to rule out quitting the government and sitting on the crossbench if Peter Dutton becomes prime minister, declaring “all options are on the table”.

The Nationals minister warned his Liberal colleagues against changing the leader, declaring it could bring down the government.

“I had many conversations yesterday, there is certainly a cohort of my colleagues who are worried about what direction this is taking and they are reserving their options, all options are on the table at the moment,” Mr Chester told the ABC.

“The point I made yesterday in a media interview is there is no reason why any potential challenger, whoever that may be, should assume that they command the numbers on the floor of the House of Representatives given we have a one seat majority

“All options are on the table in what is a very volatile environment at the moment.”

What’s making news:

Malcolm Turnbull is facing a fresh crisis with the threat of a second challenge to his leadership looming, after two cabinet ministers and five junior conservative frontbenchers quit or offered to resign, having voted for Peter Dutton in yesterday’s partyroom ballot.

Inside story on yesterday’s leadership spill: how leadership paranoia sent Turnbull ‘spies’ into overdrive.

Dutton’s rise and Brawls: the Brisbane battler has always been ready to give it a go.

Malcolm Turnbull is under pressure from supporters to move quickly on a range of policy resets to blunt the appeal of another Peter Dutton challenge.

Attorney-General Christian Porter is firming as the favourite to take over from Peter Dutton in the Home Affairs super portfolio, with Finance Minister Mathias Cormann also said to be in contention for the role.

The Liberals’ campaign organisation is bracing for the possibility of an early election sparked by leadership turmoil, but the party appears ill-prepared as state branches lag in choosing candidates and complain of funding shortages.

Simon Birmingham cancelled his appearance at a $5000-a-head fundraiser for the Victorian Liberal Party after a senior state MP blasted the Education Minister’s handling of the Catholic funding crisis.

Labor’s minor reshuffle was confirmed yesterday with Linda Burney, Ed Husic, Terri Butler, Jenny McAllister and Louise Pratt gaining new portfolio positions.

The Australian’s Dennis Shanahan writes that the Liberal leadership ballot has solved nothing for Malcolm Turnbull and his government.

Additional reporting: Rosie Lewis

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Original URL: https://www.theaustralian.com.au/national-affairs/politicsnow-malcolm-turnbull-faces-uphill-struggle-to-stay-pm/news-story/2f25eab196bbe3e1c74225e687ae8e89