Coalition Officially Splits for 3rd Time in Its History

Key points of contention were policies like support for civilian nuclear energy, supermarket divestiture laws, and a $20 billion regional Future Fund.

Nationals Deputy Leader Kevin Hogan (L) and Leader David Littleproud (R) at Parliament House in Canberra, Australia on May 12, 2025. AAP Image/Mick Tsikas

The Liberal and National parties will not be renewing their formal alliance as the Coalition, which together form the largest centre-right political bloc against Labor.

Nationals leader David Littleproud made the announcement on May 20, as both parties continue to dig through the fallout of the major May 3 election loss. Traditionally, both parties have to renew their alliance after every election.

It marks only the third time in the Liberal-National Coalition’s history that the parties have gone their separate ways at a national level, the states have different circumstances.

Describing it as “the hardest political decision” of his career, Littleproud said the move would allow the Nationals to carve out their own identity and support regional policies that did not align with the Liberal Party’s current focus.

These include nuclear energy, supermarket divestiture laws, and a $20 billion regional Future Fund.

“It’s a mature conversation that Sussan and I had about rediscovering who they are and who we are,” Littleproud said, referring to Liberal leader Sussan Ley.

He framed the break not as a hostile divorce, but as a strategic “pause” to better represent each party’s base.

“This is about taking a deep breath and saying to the Australian people: this is time apart for us to be better, and to focus on them,” Littleproud said.

Policy Rift at the Core

Littleproud said a key sticking point was the current moderate Liberal Party leadership’s reluctance to fully embrace nuclear energy.

“You cannot run an economy of the industrial scale in Australia with just a renewables approach,” he said. “We believe nuclear energy is the answer for regional and rural Australia.”

Nationals Deputy Leader Senator Bridget McKenzie backed the decision, saying their election platform strongly supported nuclear power, diversification of the economy to the regions, and tougher competition laws on supermarkets.

“We fought an election on policies that, in the main, rural and regional Australia backed,” she said.

The Liberals on a ‘Journey of Rediscovery’

Littleproud praised Ley’s leadership and expressed hope of rebuilding ties in the future.

“I believe she is the leader that can help the Liberal Party reinvent itself … I’ll work every day with her to try and rebuild that relationship,” he said.

But he insisted the Nationals must act independently to deliver on promises made to regional voters.

“This is not a separation predicated on emotion, power, or money. It’s a principled position to prosecute what we took to the Australian people.”

He argued that giving the Liberals space could help them find their footing.

“The Liberal Party is on a journey of rediscovery. This will provide them the opportunity to do that without the spectre of the National Party imposing their will.”

Littleproud dismissed criticism that Nationals had contributed to the Coalition’s poor showing in urban seats.

“I never saw a billboard … from the Labor Party attacking me, or the National Party,” he said, highlighting that the Nationals were not involved in inner-city issues that cost the Liberals crucial votes.

3rd Break in History

Formed during the Second World War in 1944, the Coalition arrangement has long brought together the urban-based Liberal Party and the regional-based Nationals (then the Country Party).

The arrangement has allowed the Coalition to service the needs of the different voter blocs without losing supporters.

McKenzie acknowledged the significance of the move, saying, “This is only the third time in 80 years that we’ve not operated under a formal Coalition agreement.”

The previous breaches came in 1972 to 1974 during the Whitlam years, and 1987 when the Queensland Nationals under Joh Bjelke-Petersen walked away from the Coalition.

Shadow Cabinet Fallout

With the Coalition dissolved, Nationals members will no longer hold positions in the shadow cabinet.

Littleproud confirmed no formal agreement had been signed with Ley post-election, meaning shadow portfolios will now be distributed within the Liberal Party alone.

Despite the loss of formal titles and roles, Nationals Deputy Leader Kevin Hogan said the decision wasn’t about individual gain.

“A lot of our members … are going to lose position and titles out of this and money, and that wasn’t even a focus of the discussion.”

He likened the split to a break in a long relationship, suggesting time apart could lead to greater clarity.

Communication Lines Would Remain Open

Littleproud said communication lines would remain open with the Liberals.

“There is no animosity, no angst, no heat. It is predicated on respect and understanding,” he said.

While not ruling out a return to the Coalition before the next election, he said the Nationals were ready to go it alone.

“This is a principled position. We come here not wanting to have to scrap over every last crumb,” he added. “My job [is] not to be a drag on their vote... The National Party didn’t drag anyone’s vote down in the capital city because we’re able to focus on the things that are important to us.”

Littleproud said he has no intention of stepping back.

“I need to leave a legacy for those people that I represent ... I don’t intend to take a step back when I take big steps forward in three years.”

Response

Graham Young, executive director at the Australian Institute for Progress, said the National Party was in a vastly different position to the Liberals, who had lost 30 percent of their seats.

“This election was a particularly momentous one with the Liberal Party sinking to an historical loss and is similar to the situation in 1972 after Whitlam’s win,” he told The Epoch Times.

“The National Party obviously thinks the Liberal Party needs some time on its own to work out its problems, and obviously feels it has a reasonable viable position itself.

“There appears to be more regret than recriminations, so I would expect the two parties to work very closely in parliament and for there to be little apparent difference between how they operate now, except that coordination will obviously happen through changed mechanisms.”

Meanwhile, United Australia Party Senator Ralph Babet said the move signalled “real change” for Australia.

“To restore nationalist and conservative values, the old institutions must fall so something stronger can rise in their place,” he wrote on X.

While tech businessman, Matt Barrie, said the Nationals Party could potentially absorb a lot of disenfranchised suburban voters that had move to independents.

“Nationals now need distinct policies from the Liberals and might be able to attract some defections back,” he wrote on X. “Nationals and One Nation would then have a lot in common.”