Australia’s federal opposition Liberal Party is confronting a deepening leadership crisis as senior MP Angus Taylor resigned from the shadow cabinet and signalled a bid to unseat Opposition Leader Sussan Ley.

Taylor’s move on Wednesday intensified weeks of internal dissent over Ley’s stewardship of the party following its defeat at the 2025 federal election and a series of damaging splits with Coalition partner the Nationals.

Taylor, who narrowly lost the party leadership to Ley in a caucus vote last year, declared his intention to consult colleagues about the future direction of the party and urged stronger leadership to halt its decline.

Party room speculation ahead of his resignation was so intense that many frontbenchers were preparing their own departures to clear the way for a formal leadership spill by the end of the week.

This dynamic reflects frustration among some Liberal ranks with the party’s polling, which recent surveys suggested had slid to historically low levels, and with its capacity to challenge the Labour government.

Ley, who became the first female leader of the federal Liberal Party in May 2025, has defended her position, insisting she remains “up for the job” and pointing to the recent reunification of the Coalition after a bitter split triggered by disagreements over Labour’s hate speech reforms.

Under her leadership, the Liberals have worked to hold the government to account on cost-of-living pressures and other issues, a point she reiterated in media appearances as internal unease grew.

Supporters within the party have publicly reiterated their confidence in her leadership, arguing that unrest and speculation only serve to weaken the opposition’s public standing.

Nonetheless, Taylor’s resignation from the shadow frontbench and his framing of the party’s state as its “worst position” since its foundation have given momentum to conservative factions seeking renewed direction.

Though he has not yet lodged a formal challenge, backers are expected to mobilise support for a leadership ballot that could be triggered as early as this week.

Moderates within the party have called on would-be challengers to demonstrate they have the numbers via a petition before proceeding, underscoring the delicate balance of power within the parliamentary Liberal ranks.

The unfolding leadership saga comes as the Coalition continues to wrestle with broader strategic questions and public confidence, leaving the Opposition’s future leadership in flux as it positions itself ahead of future electoral contests.