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Liberals wait on Hastie-Taylor decision before challenging Sussan Ley’s leadership

by Rachel Morgan News Editor January 24, 2026
written by Rachel Morgan News Editor

The Liberal Party is facing a leadership challenge as pressure mounts on Sussan Ley following the Nationals’ decision to leave the Coalition last week. Andrew Hastie and Angus Taylor are both being encouraged to declare their intentions to challenge Ms. Ley before a formal spill motion is called.

Growing Calls for Change

A growing number of Liberals believe Ms. Ley’s position is no longer sustainable. However, multiple sources indicate that a key condition for a successful challenge rests with the right faction of the party uniting behind either Mr. Hastie or Mr. Taylor.

Did You Know? The Nationals’ departure from the Coalition stemmed from a dispute over shadow cabinet solidarity, specifically regarding their opposition to Labor’s hate laws bill.

The crisis began last week when Nationals senators resigned from Ms. Ley’s frontbench and subsequently withdrew from the Coalition altogether. While many Liberals sympathize with Ms. Ley, believing she had little choice but to accept the initial resignations, the resulting instability has fueled the belief that a leadership spill is inevitable.

Potential Challengers Emerge

Supporters of Andrew Hastie are actively seeking support for the West Australian MP, with some claiming he has a stronger base of support than Angus Taylor. Mr. Hastie has reportedly been discussing potential strategies with allies, including the possibility of a challenge before or during the first two weeks of parliamentary sittings in February.

Discussions about an immediate spill next week have cooled due to logistical challenges. Mr. Taylor, currently on holiday in Europe, has yet to begin contacting colleagues to gauge support. One Liberal source noted that Mr. Hastie, as a backbencher, has greater freedom to discuss the leadership openly compared to Mr. Taylor, who is constrained by shadow cabinet conventions.

Expert Insight: The urgency within the Liberal party to resolve this leadership question is directly tied to their diminished position in parliament. Facing a significantly larger Labor majority and a strengthened crossbench, including the departing Nationals, a swift and unified resolution is crucial to maintain any effective opposition.

Other names occasionally mentioned as potential leadership candidates include Dan Tehan, Tim Wilson, and Ted O’Brien, who currently serves as Ms. Ley’s deputy. Melissa McIntosh has also expressed future leadership ambitions but has stated she will not initiate a spill against Ms. Ley.

The Path Forward

Multiple Liberal sources suggest a strong preference for Mr. Hastie and Mr. Taylor to agree on a single challenger before a spill is triggered. This is to avoid a divisive contest that could further fracture the right faction. For a spill to succeed, the right faction must present a united front behind a consensus candidate.

The situation is complicated by anger within the Liberal party towards Nationals Leader David Littleproud, who has effectively made Ms. Ley’s removal a prerequisite for any Coalition reunion. However, the immediate political reality of facing a larger Labor government is driving the push for a change in leadership.

Ms. Ley has stated her willingness to reconcile with the Nationals, giving them the Australia Day long weekend to reconsider their position before she addresses the vacancies in her frontbench. However, questions remain about who would be willing to accept a portfolio previously held by a Nationals member, knowing it could be short-lived.

Frequently Asked Questions

What prompted the current crisis in the Liberal Party?

The Nationals resigned from Ms. Ley’s frontbench and then quit the Coalition following a dispute over shadow cabinet solidarity related to Labor’s hate laws bill.

Who are the main contenders to challenge Sussan Ley’s leadership?

Andrew Hastie and Angus Taylor are the two main contenders being urged to challenge Ms. Ley, but the right faction must first agree on which of them will put forward their name.

What is the current state of the Liberal Party’s numbers in parliament?

Currently, the Opposition has 28 lower house seats compared to Labor’s 94, with a crossbench including the Nationals totaling 28 seats.

As the Liberal party navigates this period of uncertainty, what role will factional unity play in determining the future direction of the party?

January 24, 2026 0 comments
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Business

Market continues to bet on February interest rate cut despite December jobs surge

by Chief Editor January 16, 2025
written by Chief Editor

Australia’s Unlikely Job Market Battle: Steady Unemployment Rates Amid Rising Participation

It may sound counterintuitive, but Australia’s unemployment rate has climbed to 4%—not because jobs are disappearing, but because more people are stepping up and actively searching for work. The Australian Bureau of Statistics (ABS) shared that although the nation saw the addition of 56,000 jobs in December, this increase in labor participation led to 10,000 more individuals entering the ranks of the unemployed. This dynamic shift resulted in a record-breaking participation rate of 67.1% among those aged 15 and over, either in work or seeking employment.

The Strength in Numbers: Employment to Population Ratio Hits a New High

The growing enthusiasm among job seekers reflects an encouraging upward movement in the employment-to-population ratio—a healthy 64.5%, signaling a robust capability to integrate more of the workforce into productive employment.

December’s job growth, however, is characterized by a notable 80,000 part-time positions, overshadowing a decline in full-time roles by around 23,700. This scenario suggests a shift in employment dynamics, where flexibility in work arrangements might be attracting more individuals into the workforce—thus elevating participation numbers, yet simultaneously impacting full-time employment figures.

Economists Weigh In: A Rate Cut on the Horizon?

Despite these promising trends, the prospect of an interest rate cut by the Reserve Bank of Australia (RBA) remains in doubt. According to HSBC Australia’s chief economist, Paul Bloxham, the strengthening job market makes a rate cut in February, which has been speculated by many, less probable.

Bloxham notes that this tightness in the job market, having previously aided in easing inflation, signifies less room for monetary easing. While rising employment figures and falling unemployment rates are clearly positive for the economy, they concurrently suggest that lower interest rates may not be on the immediate horizon.

Nevertheless, some economists propose that the potent combination of a strong job market and declining wage growth challenges the RBA’s assumption of its ‘full employment’ level threshold, which is expected to keep inflation within its target range of 2-3%.

Interestingly, BDO’s economics partner Anders Magnusson suggests that the current employment scenario should be a cause for celebration for the RBA, given its achievement of full employment without triggering significant inflationary wage pressures.

Wages Growth Trends: A Futuristic Perspective

Supporting this view is the recent data indicating a dip in wage growth from 4.1% to 3.5% through the latter half of 2023—a trend that the RBA will closely observe as it awaits definitive signals from the upcoming quarterly Consumer Price Index (CPI) release at the month’s end.

Contrary to the analysts’ belief, financial market traders remain optimistic about a rate cut in February, with a sustained around 70% chance, as per recent market movements.

FAQs

  • Will Australia see a rate cut in February? While analysts suggest a lower chance due to strong job market data, traders are still betting on it, reflecting ongoing uncertainty.
  • Why is unemployment rising? The rise stems not from job losses but from an increase in labor force participation—more people are seeking employment.
  • What does the employment-to-population ratio indicate? A high ratio signifies better integration of the population into productive employment, a positive economic indicator.

What Does the Future Hold?

The evolving job market landscape in Australia might experience fluctuations, balancing between encouraging employment figures and navigating shifts in wage growth and work arrangement trends. As we look forward, understanding these dynamics becomes crucial, not just for policy makers but for anyone involved or affected by the job market.

Did You Know?

The current employment-to-population ratio at 64.5% reflects a historic high, showcasing Australia’s ability to incorporate a significant workforce proportion into productive roles.

Pro Tips for Job Seekers

Exploit the growing job opportunities by staying current with skill development courses and adapting to the evolving demands of the job market, especially with the rise of part-time opportunities.

Stay Informed and Engaged

With the future of interest rates and economic policy in a constant state of flux, keeping abreast of the latest developments is key. Consider exploring more about Australia’s economic trends. Whether you’re a potential job seeker, a business owner, or an investor, staying informed can provide you with that critical edge in decision-making.

Call to Action: We welcome your thoughts and questions on this topic. Comment below with your perspectives or concerns about Australia’s job market trajectory. Subscribe to our newsletter for continuous updates and insights.

This article is structured to meet SEO and reader engagement goals by incorporating engaging subheadings, concise paragraphs, real-life data points, and interactive elements. It’s crafted to offer valuable insights into the Australian job market context, supporting increased understanding and interest.

January 16, 2025 0 comments
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