Nationals split from Coalition: what it means for small business

David Littleproud

In a shake-up for Australian politics, Nationals leader David Littleproud has confirmed his party will not re-enter a Coalition agreement with the Liberal Party ahead of the next federal election. The announcement brings to an end the decades-long alliance between the two parties who last parted ways when Joh Bjelke-Petersen made an ill-fated run for PM in 1987.

The split could have implications for regional Australia and small business owners who rely on strong policy representation in Canberra, with the Nationals now becoming a minor political party with no seats on the front bench.

Speaking at a press conference, Littleproud said the decision was not taken lightly but reflected the need for the Nationals to stand firm on key policies.

““We come here not wanting to have to scrap over every last crumb to make sure that we get what we deserve. It’s with great disappointment that I announce that we’re not going to form part of that Coalition,” Littleproud said.

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“This is about making sure we create the environment for both of us to be better… and make sure we continue to focus on the outcomes Australians expect us to…”

A future Coalition is not ruled out

Despite the split, Littleproud stressed that the Nationals will continue to work closely with the Liberals to hold the government to account.

“I had a respectful conversation with Sussan Ley this morning, sat down, made it very clear that we remain committed to having the door open, respecting the position that Sussan has been put in, that she is a leader that needs to rebuild the Liberal Party,” Littleproud siad.

“They are going on a journey of rediscovery and this will provide them the opportunity to do that without the spectre of the National Party imposing their will.”

Putting the regions and rural Australia first

For small business owners in rural Australia, many of whom have traditionally looked to the Nationals to represent their interests, the move signals a new phase in political advocacy.  The Nationals leader made it clear his party intends to have their back, and will push ahead with its policy agenda. This includes calls for the introduction of nuclear energy and stronger supermarket divestiture powers.

“You cannot run an economy of the industrial scale in Australia with just a renewables approach,” he said.

The Nationals are also advocating for the creation of a $20 billion Regional Australia Future Fund. It’s one of several policy proposals they say were rejected by their Liberal counterparts.

Nationals senator Bridget McKenzie described the rejected policies as “a reasonable request… put to a trusted partner,” adding that the decision to walk away came after these proposals were knocked back by the Liberals.

Deputy Nationals leader Kevin Hogan acknowledged the cost of the split, including the loss of some shadow portfolios, but said it was a principled decision.

“We are always best as a country with a strong Coalition,” he said. “But we needed to make a principled stand on things today that we could not move on.”

Still, Hogan did not rule out the possibility working with the Liberals in future. “Very often, more often than not, you get back together and join back together with clearer clarity and focus on what the relationship was about and how it is going to work even better,” he said.

Party room vote remains confidential

Littleproud did not reveal whether the decision to walk away from the Coalition was unanimous within the Nationals party room, but said instead, it was a collective decision based on lived experience and the needs of regional Australians.

“[The decision came from] the collective wisdom of everyone in that room today… I think our democracy is healthier for it,” he said.

While the Nationals plan to contest the next election independently if no agreement is reached, Littleproud hasn’t ruled out a future Coalition.

“I gave the commitment that I’ll work with her (Sussan Ley) every day… to try to rebuild the relationship to the point we can re-enter a Coalition before the next election,” he said.

Littleproud said in the interim, the National Party will stand alone.

“On the basis of looking forward, not having to look back and to try and actually regain important policy pieces that change the lives of the people we represent,” he said.

With both the Liberal and National parties setting out to redefine themselves, the coming months will reveal how this split reshapes the political landscape for Australian business.

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Cec is a content creator, director, producer and journalist with over 20 years experience. She is the editor of Business Builders and Flying Solo, the executive producer of Kochie's Business Builders TV show on the 7 network, and the host of the Flying Solo and First Act podcasts.
She was the founding editor of Sydney street press The Brag and has worked as the editor on titles as diverse as SX, CULT, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living.
She has extensive experience working as a news journalist, covering all the issues that matter in the small business, political, health and LGBTIQ arenas. She has been a presenter for FBI radio and OutTV.

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