The Nationals have broken the Coalition, for the first time in nearly four decades, because new Liberal leader Sussan Ley would not agree to their policy demands being part of a new agreement between the parties.
Ley had hoped an agreement could be reached. The split will make running a strong opposition more difficult and complicated.
The Nationals’ dramatic decision is also likely to risk greater instability within the Liberals, where the numbers between the conservatives on one hand and the moderates and centrists on the other are narrowly balanced.