Australia PM Malcolm Turnbull faces being ousted as his own party pulls support

Leader says he will quit if he does not receive letter of support from Liberal Party lawmakers

PM Malcolm Turnbull at a press conference at Parliament House on Thursday (REUTERS)

Australian Prime Minister Malcolm Turnbull appears to be facing the end of his leadership after key figures from the ruling Liberal Party withdrew their backing.

Foreign Affairs Minister Julie Bishop will launch a bid for the party’s leadership, according to Australian media reports.

Treasurer Scott Morrison, previously one of Mr Turnbull’s closest allies, is also expected to run for the top job.

The prime minister – who only narrowly survived a challenge from former home minister Peter Dutton earlier this week – said he was willing to quit if a letter requesting another leadership vote was signed by 43 of his party’s lawmakers.

Mr Turnbull said he would not take part in any leadership contest if he got the letter before a showdown meeting at midday on Friday.

Seven of Mr Turnbull’s nine ministers have already tendered their resignations this week.

The political crisis saw the government adjourn parliament on Thursday until September.

The Australian Labor Party leader Bill Shorten condemned the “cannibalistic behaviour” of the Liberal Party over its leadership. He said it was eating the Liberal-National coalition government alive.

“Australia no longer has a functioning government,” Mr Shorten told parliament during a chaotic session.

In a final attempt to put pressure on rebel lawmakers in his party to give him their support, Mr Turnbull said he would resign his seat in parliament if he lost the leadership, threatening the government’s one-seat majority.

The prime minister described the push against him as an “internal insurgency” to move the Liberal Party to the far right.

“It’s been described by many people...as a form of madness,” he said. “I have never given in to bullies.”

A social liberal and multi-millionaire former merchant banker, Mr Turnbull has struggled to appeal to conservative voters since he came to power in a party coup in 2015. He only narrowly won Australia’s federal election in 2016.

The ruling coalition government has consistently trailed the opposition Labor party in opinion polls, and the failure to win any of the five by-elections held in July concerned Liberal Party colleagues worried about losing next year's federal election.

No Australian prime minister has lasted a full three-year term since John Howard lost power in 2007 after more than 11 years in office.

They have all been thrown out of power by their own parties amid poor opinion polling in a trend of political instability that divides parties and angers voters.

The political uncertainty led investors to punish the Australian dollar, sending it 0.9 per cent lower to $0.7283 on Thursday. Australian shares slipped 0.3 per cent.

Additional reporting by agencies