Negotiations are already under way, with the pair yesterday presenting five core demands, including a regional development bank. Bob Katter expressed optimism about a deal, saying the party was not "in the business of tearing down governments".
The crisis was triggered by Gordon's ex-partner sending a letter containing the domestic violence allegations to MPs last week, according to the Courier Mail. In Parliament on Friday, Gordon said he "welcomed" a police investigation and admitted failing to lodge tax returns or pay child support.
However, it was not until late on Sunday that he admitted to criminal convictions dating back to 1987 and including burglary, breaching bail conditions, driving while unlicensed and being served with an Apprehended Violence Order (AVO).
Palaszczuk said Gordon's position became untenable after she discovered he had misled her and the party. "The Deputy Premier and I sat down with him on Tuesday night [last week] ... I said, 'is there anything else I need to know?' ... He looked us both in the eye and said 'no, there is not'."
She said she was prepared to risk her premiership because "integrity is fundamental to any government that I lead".
The Opposition has questioned why she waited a week to refer the domestic violence allegations to police. "She has covered this up," said Opposition leader Lawrence Springborg.
Labor, which won 44 seats in the 89-seat Parliament, had governed with the support of the Speaker, an independent. If the LNP - which holds 42 seats - won a byelection, it could govern with the two Katter MPs. State Labor is now reviewing its candidate vetting procedures, after police checks failed to uncover Gordon's criminal past, probably because of the passage of time. Gordon ignored the party's requirement to disclose convictions.