Malcolm Turnbull addresses reporters outlining what will happen over the next few days.
Australian Prime Minister Malcolm Turnbull will not stand as a candidate if a leadership spill is called - but he's going down fighting.
Turnbull's prime ministership is effectively over, after a mass exodus of his ministers and a key supporter of his also putting his hand up for the top job.
Sky News reports that Treasurer Scott Morrison will run against Peter Dutton for the Liberal leadership, with further rumours Turnbull will step aside.
Channel Seven is reporting that Foreign Minister Julie Bishop will also stand for the leadership.
But Turnbull isn't lying down just yet and has held a press conference this afternoon to delay the vote.
He said he was waiting for a letter with the signatures of the majority of the Liberal Party to call a meeting on the prime mininstership challenge.
He said once he received that - if it existed - he would call a meeting at midday tomorrow.
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"In terms of my own intentions, when the party room meeting is called, I will invite a spill motion to be moved. If the motion is carried, I will treat that as a vote of no confidence and I will not stand as a candidate in the ballot."
The time will give Morrison more time to build support.
Turnbull also took a swing at challenger Dutton saying there was still a question over his eligibility to sit in parliament when he fronted the media at Parliament House after a tense morning and a mass exodus of 13 ministers.
"The reality is that a minority in the party room supported by others outside the Parliament have sought to bully and intimidate others into making this change of leadership that they're seeking," he said.
"It is described by many people … as a form of madness, and it is remarkable we're at this point where only a month ago we were being avid readers of polls, and we were just little bit behind Labor."
Turnbull said the public would be "crying out" for an election because Australians would be "rightly appalled" by what they were witnessing in Parliament this week.
When asked if he would ask his supporters to back Treasurer Morrison for the job if a spill was carried, Turnbull refused to answer, but said he would not give in to bullies.
"I mean, politics is a tough business," he said.
"You have got to judge the political actions by their outcomes. I think what we're witnessing - what we have witnessed at the moment is a very deliberate effort to pull the Liberal Party further to the right.
PM Turnbull: “I’ve never given in to bullies” pic.twitter.com/Z6ToY6C9gN
— Annika Smethurst (@annikasmethurst) August 23, 2018
"What began as a minority has, by a process of intimidation, persuaded people that the only way to stop the insurgency is to give in to it.
"I do not believe in that. I have never done that. I have never given in to bullies, but you can imagine the pressure it's put people under."
Turnbull said he had sought advice from the Solicitor-General on the eligibility of Dutton to sit in Parliament and expected to receive that first thing tomorrow morning.
"[If a spill motion] is carried and there is a new leader of the Liberal Party, that person will have to obviously satisfy the Governor-General that they can command a majority on the floor of the House of Representatives," he said.
"In the case of Mr Dutton, I think he'll have to establish that he is eligible to sit in the Parliament.
"I don't want to elaborate on this anymore than I need to, but this issue of eligibility is critically important. You can imagine the consequences of having a Prime Minister whose actions and decisions are questionable because of the issue of eligibility. Are they validly a minister at all?"
That eligibility centres on claims Dutton may have breached the Constitution and been ineligible to sit because of his interests in two childcare centres his wife operates and the government subsidies they receive.
Turnbull also suggested he will leave Parliament if he loses the leadership.
"I made it very clear that I believe former Prime Ministers are best out of the Parliament."
The House of Respresentatives has now been adjourned until September 10, meaning there will be no question time this afternoon, allowing room for Mr Turnbull to call a Liberal party room meeting. The Senate is still sitting but the front bench is pretty bare.
The Guardian is reporting that Turnbull has effectively "booby-trapped" the office if Dutton takes leadership.
Turnbull leaving Parliament if he loses would trigger a byelection - which would likely mean Dutton would be unable to command a majority in Parliament.
He also put doubt on Dutton's ability to lead and raised again the question of his eligibility to sit, the Guardian said.
MINISTERS DESERT TURNBULL
Earlier today, there were 13 resignations from the ministry after members realised the Prime Minister no longer had the support of his party.
The first were Mathias Cormann, Mitch Fifield and Michaelia Cash who fronted cameras to announce their resignations and told Turnbull he should call another party room meeting to resolve the leadership question.
There are reports Health Minister Greg Hunt could stand as Dutton's deputy in the leadership ballot.
Ministers Alan Tudge, Angus Taylor, Michael Keenan, Steve Ciobo are the latest to confirm their resignations, signalling further nails in the coffin.
Senator Cormann said he asked Turnbull if he wanted him to resign but he declined.
"It's with great sadness and a heavy heart that we went to see the Prime Minister yesterday afternoon to advise him that in our judgment he no longer enjoyed the support of the majority of members in the Liberal Party party room and that it was in the best interests of the Liberal Party to help manage an orderly transition to a new leader," he said.
"The reason we came to that view is because of the number of colleagues who came forward, who supported Malcolm in the leadership ballot on Tuesday who indicated to us that they had changed their position."
The trio met with Turnbull earlier this morning to discuss the untenable situation.
"We are very conscious of the seriousness of the decision that we've made," he said.
"We didn't take this decision lightly. Personally, I know that my colleagues also have anguished over this for some time."
Senator Cormann said the decision came after a number of colleagues, including five cabinet ministers who supported Turnbull on Tuesday, indicated there needed to be a change in leadership of the party.
The ministers all asked that the matter be resolved swiftly because they cannot allow the situation to continue as it is.
The Liberals have shut down the Parliament and given up on governing Australia.
— Bill Shorten (@billshortenmp) August 23, 2018
My united and stable Labor team are ready to govern. We are 100% focused on delivering a fair go for all Australians. pic.twitter.com/LGAzui01fq
"I became aware yesterday that it was very clear that the Prime Minister no longer, in my opinion, had the confidence of the party room," Senator Cash said.
The move means Turnbull has lost his two most senior representatives in the Senate.
Senator Cormann said he believed challenger Peter Dutton was the best person to lead the party to the next election.
DUTTON MOUNTS SECOND CHALLENGE TO TURNBULL
Earlier this morning, Dutton said he had the numbers to roll Turnbull as prime minister.
That statement came after the former home affairs minister asked Turnbull to call a party room meeting where he will challenge him for the top job.
Cormann switching to Dutton's camp could be the key in the challenge.
"I don't think Peter Dutton would be doing this unless he had Mathias Cormann," Sky News political reporter Laura Jayes said.
"This is a big, risky move for Peter Dutton."
Dutton tweeted his intentions this morning, but many speculated he did not have the required 43 signatures to get Turnbull to call the meeting.
Sky News is reporting Dutton only has signatures of support from 25 MPs.
But Dutton briefly told reporters during a walk through Parliament this morning that he was confident he had the numbers.
"I wouldn't have contacted the PM if I didn't believe we have the majority support," he said in a brief statement.
Earlier Dutton addressed the media, recapping what he had already tweeted about at 7.45am.
"I just wanted to make a couple of brief remarks and then I'm going to address the media later on," Dutton said.
A few minutes ago I spoke with Malcolm Turnbull to advise him I believed the majority of the party room no longer supported his leadership. Accordingly, I asked him to convene a party room meeting at which I would challenge for the leadership of the Parliamentary Liberal Party.
— Peter Dutton (@PeterDutton_MP) August 22, 2018
"As I put out, by way of statement earlier this morning I called the Prime Minister to advise him that it was my judgment that the majority of the party room no longer supported his leadership.
"As such, I asked him to convene a meeting of the Liberal Party at which I would challenge for the leadership of the parliamentary Liberal Party."
MPs have reportedly been demanding Dutton present the petition if he has it, however the ballot itself is supposed to be secret.
One Liberal MP has reportedly told the Australian Financial Review that the Whip's office has received four complaints from female MPs saying they felt intimidated when asked to sign the petition, which they refused to do.
Liberal MP Sarah Henderson told Melbourne radio this morning that she was offered a ministry position in exchange for switching to Dutton's side.
"To be rewarded for an act of treachery would be a terrible thing," she said.
HAVE TURNBULL'S SUPPORTERS SWITCHED?
Turnbull's camp reportedly remains confident he still has the numbers with one of his key backers, Trent Zimmerman, saying he did not know anyone who had switched to Dutton's side since Tuesday.
He said some of the cabinet ministers who offered their resignations had only since reaffirmed their loyalty to Turnbull.
"Since Tuesday we've obviously also seen a strong statement of support from those cabinet ministers that voted for Peter Dutton on Tuesday," he told The Guardian.
Deputy leader Julie Bishop also said she was not aware anyone had changed their votes.
But Cormann and Cash went to see Turnbull this morning, according to Channel 7.
Bishop told Triple M this morning she was unaware Cormann had switched and that he swore his support for Turnbull yesterday.
Other Sky reporters said Cormann flipping would be "the death knell" for Turnbull, with political editor David Speers saying he had received a text Cormann would move later this morning.
Defence Industry Minister Christopher Pyne, one of Turnbull's backers, told the ABC Dutton had not followed the right process.
"As much as I love Peter Dutton, just because he rings the Prime Minister and says I think I've got the numbers, you have to have a party meeting, is not the way you run a government or a political party," he said.
He said if the camp trying to change the numbers wants a meeting they should have the required 43 signatures.
Pyne said Dutton's side had been claiming all week the numbers which had proved to be untrue.
"I think my colleagues are getting thoroughly jaded with the lies that are being spread through the building in an attempt to stampede the Liberal parliamentary party," he said.
Pyne said he was "certain" Turnbull still had the majority of the support of the party room.
The Liberals' leadership uncertainty entered its third day after a shambolic night.
MPs linked to Dutton attempted to launch a petition forcing Turnbull into a late night showdown.
It was a fizzer which only managed to antagonise some Liberals.
A furious senior Turnbull supporter told The Daily Telegraph Dutton's side had spread "lying propaganda" in an effort to pressure their colleagues into a vote, including rumours that Cormann had flipped.
MPs expect a second leadership spill, following Tuesday's vote won by Turnbull, some time today.
Ministers Michael Sukkar and Zed Seselja have resigned this morning, Sky News reports, while James McGrath resigned last night.
Sukkar and Seselja refused Turnbull's offer to remain as Ministers despite voting for Dutton in Tuesday's spill.
This morning I spoke with the Prime Minister and tendered my resignation pic.twitter.com/mELOY3SASj
— Greg Hunt (@GregHuntMP) August 23, 2018
Meanwhile there are serious questions as to whether Dutton, the former home affairs minister, can sit in Parliament let alone become Prime Minister.
Labor has produced an opinion from Brett Walker SC to the effect Dutton is ineligible to sit in Parliament because he has breached a section of the Constitution.
The specific part of S44 prevents MPs from having a direct or indirect pecuniary interest related to a Commonwealth public servant.
Dutton's wife has a child care business which benefits from Commonwealth subsidies. Dutton has said his own legal advice is there has been no breach.
But Attorney-General Christian Porter has referred the matter to the Solicitor-General.
Dutton's petition needs 43 signatures to force the Prime Minister to call a party room meeting, but Turnbull may decide he has no choice with his position in such doubt.
If Turnbull does not call a spill imminently, it cannot happen for two weeks, with Parliament going on a fortnight's break.
But it's not clear how many signatures Dutton has managed to obtain, with Liberal MP and Turnbull supporter Jane Prentice saying around nine politicians had signed the letter but Sky News this morning reporting that figure has risen to 25.
Just three Liberals told the ABC they had done so.
NIGHT OF TURMOIL
The Prime Minister's future hangs in the balance, but he remained stoic on a night of rampant rumour and intrigue, in which the much-discussed petition failed to come out and force a Liberal leadership vote.
Dutton has made it clear he wants another spill today, after losing the first by a narrow margin of 48-35 votes and resigning from his role as Home Affairs Minister.
The backbencher revealed yesterday he was "working the phones" to win the prime ministership.
His letter was circulated to MPs at 6.30pm yesterday but by 8pm, a spokesman for the Government's chief whip Nola Marino ruled out the possibility of a party room meeting for the night.
Governor-General Sir Peter Cosgrove had been due to leave Canberra but The Australian was told he decided it would be best to remain in the capital "at this time".
Ten ministers who backed Dutton in the vote offered to resign on Tuesday, but Turnbull only accepted that of Dutton and former international development minister Concetta Fierravanti-Wells.
Assistant to the Prime Minister James McGrath last night went to the PM and insisted Turnbull accept his resignation.
"The people who have for all their lives counted on us to look after them and their families are now questioning our commitment to them," said the Queensland senator in his resignation letter. "Our people feel forgotten, ignored and spoken down to. As a Liberal National Party Senator for Queensland, this is an intolerable situation.
"Like Peter Dutton has said, we must do everything in our power to stop Bill Shorten ever becoming Prime Minister."
Three years ago, Mr McGrath was instrumental in helping Turnbull replace Tony Abbott as Prime Minister.
If more ministers follow his lead in insisting on resigning, Turnbull will be left in a nightmare position.
The list of those who offered to go included Cabinet ministers Greg Hunt, Michael Keenan and Steven Ciobo, threatening the PM's ability to govern.
DUTTON'S BIG PROBLEM
As Dutton battles to prove his leadership qualities, Labor has thrown a spanner in the works by claiming he may have breached the Constitution and be ineligible.
His wife Kirilly owns and operates two childcare centres, owned by RHT Family Trust, of which the family are all beneficiaries, according to ASIC documents.
The business receives Commonwealth subsidies under the Government's childcare reforms, which came into effect on July 2. It has received A$5.6 million in taxpayer-funded rebates over the past eight years, according to The Australian, which are passed on to families.
This could mean Dutton has a "direct or indirect pecuniary interest with the Public Service of the Commonwealth", or a case of an office of profit under the Crown, which would lead to a disqualification from Parliament.
There is no evidence he has breached the Constitution on these grounds, and Dutton has legal advice his business affairs were above board. But Labor has also obtained advice, and says there's a problem.
Dutton released legal advice making it clear he is eligible to sit in Parliament after a "spurious and baseless" campaign against him.
"The timing (of the doubts) on the eve of current events in Australian politics is curious," he said.
"There has never been any doubt about my eligibility to sit in parliament."
The legal advice is dated December 4, 2017.
In a letter obtained by News Corp Australia reporter Claire Bickers, Shadow Attorney-General Mark Dreyfus wrote to Attorney-General Christian Porter, citing advice from barrister Bret Walker declaring Dutton ineligible.
"Mr Dutton was incapable of being chosen for the 45th Parliament and is not entitled to continue to sit," the advice states.
Porter said in a statement last night that he had referred questions over Dutton's eligibility to sit in Parliament to the Solicitor-General.
TURNBULL FIGHTS FOR SURVIVAL
The Prime Minister told Parliament yesterday he had not seen the legal advice and was not in possession of all the facts.
"The Member for Dickson has advised me he is not in breach of section 44 and I have no reason there to believe he is," said Turnbull.
"As far as the solicitor-general is concerned, the matter has only arisen in very recent times and we are not in possession of all the facts relating to the arrangements between the childcare centre and the member for Dickson's trust."
Labor asked if Dutton had excused himself from cabinet during talks about the childcare funding changes, as he had done in previous governments and Turnbull said he would report back after seeking advice from the cabinet secretary.
Dutton's supporters reacted with fury, with one senior conservative MP telling The Australian: "It is unbelievable that he would threaten the government's majority to try and save his leadership.
"It has scared a lot of members and senators that he would have thrown a member of his team under a bus."
The PM yesterday afternoon held a news conference, flanked by Treasurer Scott Morrison and Finance Minister Mathias Cormann to admit defeat after one of their signature economic reforms — tax cuts for big business — was killed in the Senate.
The embarrassing podium performance outside Parliament House involved an awkward hug from Morrison when asked if he could rule out any leadership ambitions. "This is my leader and I'm ambitious for him," he said as he put his arm around Turnbull.
Support from the pair is vital for Turnbull as he fights to survive.
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