Coalition Set to Reunite as Liberals Agree to Nationals’ Demands

The key demands raised related to nuclear energy, supermarket divestiture powers, and the creation of a $20 billion regional Future Fund.

Nationals Leader David Littleproud (C), Nationals Deputy Leader Kevin Hogan (R), and Nationals Senate Leader Bridget McKenzie (L) at Parliament House in Canberra, Australia on May 20, 2025. Lukas Coch/AAP Image

The Coalition is expected to be back on track after a brief but high-stakes split, with the Liberal Party agreeing to all four conditions put forward by Nationals leader David Littleproud.

The agreement was reached during a Liberal Party room meeting on May 23, ending days of public tension and speculation over the future of the long-standing conservative alliance.

“Well done David Littleproud! Liberals back down on all requests,” Nationals Senator Matt Canavan confirmed the move in a post on X.

“We continue the fight to use all our energy resources, protect small businesses and farmers and deliver better services. Great win for the Nationals and Regional Australia. We will always fight hard for you!”

The key demands centered on support for nuclear energy, new powers to break up supermarket monopolies, and the creation of a $20 billion regional Future Fund—issues Littleproud argued were sidelined in recent Coalition discussions.

Breakup Followed by Reconciliation

Just days earlier, Littleproud had formally announced the Nationals’ decision to walk away from the Coalition agreement, citing a “mismatch in priorities” between the two parties.

The move triggered strong reactions from the Liberal leadership, with newly elected party leader Sussan Ley and her deputy Ted O’Brien issuing a joint response on May 20.

“It is disappointing that the National Party has taken the decision to leave the Coalition today,” the statement read.

While Liberals suggested continuing to work together in opposition to the government, they said that any new shared policies would need to go through their own internal review process.

This means that even though they were willing to cooperate, they still wanted time to think through their future plans carefully—especially after their recent election defeat.

Third Major Split in Coalition’s History

This brief separation marked only the third time the Coalition partners have formally split at the federal level. While temporary divisions are not unprecedented, the speed of the re-alignment underscores both the political stakes and the urgency for unity ahead of the next election.

Littleproud described the decision to walk away as the “hardest political decision” of his career but said it was necessary to ensure the Nationals could define their identity and advocate fully for regional Australia.

Despite the temporary split, the Liberal Party had left the door open for reconciliation.

“The Liberal Party’s door remains open to the Nationals should they wish to rejoin the Coalition before the next election,” the statement read.

With today’s decision, the Coalition appears poised to move forward as a united opposition.