Liberal MP Andrew Hastie threatens frontbench exit over net zero, says he and Sussan Ley are 'not besties'

Andrew Hastie, a high-profile Liberal MP often discussed as a future leader, has warned he will resign from the opposition frontbench if the Coalition maintains a policy of reaching net zero emissions by 2050, and conceded he is not close with Opposition Leader Sussan Ley.

In an interview on Sky News on Wednesday, Hastie said he would move to the backbench if the party stuck to its current climate target, and that most of his colleagues did not share his position. "Most of my colleagues, in fact, don't support my position. So I'm in the minority here," he said. "I'll serve where I'm serving as home affairs shadow right now, and I'll continue to serve until such a time as I can't. But energy policy is something I care about." He also said his relationship with Ley was "fine" but that "we're not besties on the phone every day" and accused critics within the party of having "a severe case of Stockholm syndrome."

Hastie denied that quitting the shadow ministry would automatically trigger a leadership challenge. His remarks follow days of renewed infighting within the Liberal Party over climate and energy policy, with some members urging a more conservative stance on emissions while others back existing targets aimed at aligning with international commitments.

Ley, who became leader after the federal election, has sought to shift attention away from climate divisions toward the government's economic record. In her first major economic address as opposition leader, scheduled for Wednesday in Melbourne to the Committee for Economic Development of Australia, she plans to argue that Labor's spending has driven Australians into increased reliance on the welfare system and that fiscal settings remain unsustainable.

Ley will tell the audience that the "pendulum has swung too far toward dependency," according to extracts of the speech, and that not everyone is entitled to every government benefit. She will warn that sustaining pandemic-era or emergency-level spending during normal economic conditions risks Australia's AAA credit rating and will point to government spending reaching about 27 percent of gross domestic product this year, up from 24 percent since Labor took office. Ley is also expected to cite a fiscal record that included two budget surpluses in Labor's first term followed by a A$42 billion deficit in March and continued deficits in forward estimates.

The exchanges underscore tensions within the Coalition as it balances competing views on climate policy and economic management ahead of future elections. Hastie's stance highlights a faction within the party pressing for a reassessment of net-zero commitments, while Ley's speech aims to reframe the political battleground around cost-of-government and the sustainability of the social safety net.

Both the climate target and the economics arguments form part of a broader debate across Australian politics about achieving emissions reductions while maintaining energy security and fiscal credibility. Hastie's warning raises the prospect of further public rows if party policy remains unchanged, but he and Ley have sought to downplay the risk of an immediate leadership spill.

The dispute follows broader national discussions about the pace and cost of decarbonisation, recent spending trends, and the balance between targeting support to those in need and preserving long-term fiscal sustainability. Ley has said she supports a compassionate safety net but argues that it must be financially sustainable and targeted to genuine need; Hastie has framed his stance as a matter of principle on energy policy.

The Liberal Party's next moves on climate policy and whether Hastie will follow through on his threat are likely to shape internal dynamics and the opposition's message heading into the electoral cycle.