Two Jacqui Lambie Network MPs have been 'removed' from the party and will serve as independents in Tasmania's lower house.
Miriam Beswick and Rebekah Pentland are among a handful of crossbench MPs the minority Liberal government relies upon to stay in power but the pair have no plans to change the arrangement.
In a statement on Saturday afternoon, the Jacqui Lambie Network (JLN) said the two "no longer represent" the network's values and "squandered" a golden opportunity to hold the government to account.
"(They) have made it clear that they no longer represent the Jacqui Lambie Network's values of accountability, transparency and integrity," it read.
Ms Beswick and Ms Pentland confirmed they were "no longer aligned" with the network and described Tasmania Senator Jacqui Lambie, who founded the group, as a formidable politician.
"My values haven't changed," Ms Beswick said in a statement.
"But our relationship with Jacqui has unfortunately deteriorated over the past few months and it's now best if we represent our electorates as independents."
Ms Pentland said they would continue to provide supply to the Liberal government as parliament needed to function predictably or else risk business confidence.
"No one wants to go to another election," Ms Pentland said.
"We reject any assertion we no longer stand for accountability, transparency and integrity.
"They're core values and they'll continue to guide every decision we make."
The Liberal government, in power since 2014, was re-elected in minority in March propped up by a cross bench including Ms Pentlsnd, Ms Beswick and Andrew Jenner.
Their deal to provide support to the Liberals came with a condition an independent report would be commissioned into the state's finances.
Economist Saul Eslake's report was released this week and he estimated net debt would rise to more than $16 billion in 2034/35, more than 25 per cent of gross state product, unless tax reform is implemented.
It found found the Liberal government was "entirely to blame" for the deterioration of Tasmania's financial position, due to be the worst in the country within three years.
The last remaining JLN member in parliament Mr Jenner said he stood with the decision to immediately remove Ms Beswick and Ms Pentland.
He said his relationship with them had become unworkable over a difference of opinions and values.
"The Jacqui Lambie Network made it very clear," Mr Jenner said.
"We did not have policies but we had core values - to not uphold those values once elected is a slap in the face to every single person who voted for the Jacqui Lambie Network."
Tasmania Premier Jeremy Rockliff said on Saturday he would continue to work with all MPs " to ensure stability and certainty".