The Australian government is in chaos after former Home Affairs Minister Peter Dutton announced Thursday he will again challenge the country's Prime Minister Malcolm Turnbull as party leader for the second time in a week.

Australian Prime Minister Malcolm Turnbull won Tuesday's vote

Resignations of almost a dozen ministers, including high-profile Finance Minister Mathias Cormann, have left Turnbull's position likely untenable, but the Australian leader said Thursday he would only hold a leadership vote if he received a signed petition proving that the majority of his party no longer supported him.

If the petition arrives, Turnbull said he would hold a meeting to decide the leadership at midday on Friday.

Addressing a hastily called news conference in Canberra Thursday, Turnbull said the recent upheaval, triggered by a conservative uprising over climate change policy, was a "very deliberate effort" by a minority to pull Australia to the right.

"Australians will be rightly appalled by what they're witnessing in their nation's parliament today and in the course of this week" Turnbull said, describing the campaign against him as "a form of madness."

Turnbull suggested that his main challenger Dutton might not even be eligible to sit in parliament, after local media reports that he may have violated constitutional restrictions over his family business investments.

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

In a controversial move, the government shut down debate in the parliament five hours early, leading to accusations by the Opposition Labor Party that the ruling Liberal Party had lost control.
The Australian dollar plunged on the news of the leadership crisis, falling to 72.9 US cents by midday.


Turnbull faced down an initial challenge on Monday amid a conservative uprising in the Liberal Party's ranks over climate change policy.

Dutton, a high-profile member of the party's conservative faction, was narrowly defeated by Turnbull 48 to 35 but with only seven votes between them, it made a second challenge likely.

On his official social media account, Dutton said Thursday he had spoken with 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."

The chaos deepened later Thursday morning amid local media reports that Treasurer Scott Morrison could throw his hat into the ring for leader, in place of Turnbull.

If Dutton or a third contender takes power, they will be Australia's sixth prime minister in just over a decade, amid a revolving door of leadership changes in the country's major parties.

Since 2007, no Australian prime minister has faced two consecutive elections.
Ideological split

The conservative rebellion in the ruling Liberal Party was sparked by Turnbull's climate change policy, which would have legislated to include carbon emissions cuts under the Paris Agreement.

In a chaotic week, the Australian leader dropped his policy, as well as all carbon emission targets, in an attempt to quash leadership rumblings.

Leadership uncertainty in Canberra is driving Aussie dollar weakness, #AUDUSD falling to 72.9 US cents Image #Bloomberg #ausbiz #fx pic.twitter.com/MFKy5tpgtW

— CommSec (@CommSec) August 23, 2018

But the party's right-wing have always viewed Turnbull with suspicion and hostility, given his moderate positions on a number of policies.

Turnbull has long advocated for action on climate change, and supports progressive social issues as well as an Australian Republic.

In comparison, the Liberal Party's vocal conservative faction are calling for greater investment in coal and cuts to immigration.

Soon after the vote Tuesday, Dutton resigned from the cabinet, stepping down from his dual roles as home affairs and immigration minister, which includes oversight of Australia's strict border protection policy.

During his almost two decade in parliament, Dutton has burnished his conservative credentials, often sparking controversy.

He was also one of a small number of politicians who boycotted then-Prime Minister Kevin Rudd's apology in 2008 to the Stolen Generations, a name given to the tens of thousands of Aboriginal children forcibly removed from their parents and families by the government between 1910 and 1970.

Having read the advice by Bret Walker SC, it is clear that Peter Dutton should be referred to the High Court. There is a real prospect that a person seeking to be our PM has breached section 44 of the Constitution and is disqualified from Parliament.https://t.co/n2fNxJjXuq

— George Williams (@ProfGWilliams) August 22, 2018

Questions over eligibility

By setting a potential vote over the Liberal Party leadership for Friday, Turnbull said it would also give Australia's solicitor-general a chance to issue guidance on whether or not Dutton was eligible to even be in parliament, let alone prime minister.

Earlier this week, local media reported that the former home affairs minister's family childcare business received childcare rebates and benefits from the federal government. It is possible the benefits could be unconstitutional, leaving him ineligible.

"You can imagine the consequences of having a prime minister whose actions and decisions are questionable because of the issue of eligibility," Turnbull said Thursday.

Dutton maintains he has legal advice which shows he has no problems over eligibility despite the allegations.

But Australian constitutional law expert George Williams said on social media it was likely the former home affairs minister did have a case to answer.

"There is a real prospect that a person seeking to be our PM has breached section 44 of the Constitution and is disqualified from Parliament," he said.

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