On May 20 2025, the National Party formally withdrew from its longstanding partnership with the Liberal Party, citing policy differences and, reportedly, frustration over restrictions on shadow cabinet members crossing the floor.

On May 13 2025, Sussan Ley was elected leader of the Liberal Party, narrowly defeating her opponent, Angus Taylor, 29 votes to 25. In doing so, she became the first woman to lead the Liberal Party. Yet the tight margin also exposed enduring factional and ideological tensions within the party.