It was the coalition’s second divorce following a brief separation when it suffered a crushing general election defeat in May 2025.
In the latest dispute, Ley forced three National Party senators to resign from senior coalition posts after they voted against the hate speech laws in defiance of an earlier agreement between the parties to back the legislation.
The trio said they opposed the hate speech laws because they were concerned its scope may be too broad.
The disagreement rapidly escalated into a break-up of the coalition.
The Liberal Party leader said both parties had patched up with an agreement that neither party could overturn decisions taken by the coalition’s joint “shadow Cabinet” of senior lawmakers.
They also agreed that National Party lawmakers, including the three senators who had resigned, could return to the shadow Cabinet in March, local media said.
The next general election must be held by May 2028 after Prime Minister Anthony Albanese’s centre-left Labor Party won power by a wide margin last year.
– Agence France-Presse