Australia's Liberals see party crisis deepen

Significance

The result leaves the party with only two federal parliamentary seats in Australia’s second-biggest city. It followed heavy losses in state elections in New South Wales and Victoria that gave the Labor Party control of all states and territories other than the island state of Tasmania.

Impacts

• Independents and smaller factions will continue to make inroads into the party’s traditional conservative base.
• The Liberals needs to regain the trust of business leaders, who are dismayed by the party’s neglect of critical policies.
• Dutton may have to expel hardliners to rescue the party, although this would bring short-term political pain.