The federal government's "freedom commissioner", Tim Wilson, says the ruling in the defamation case brought by Treasurer Joe Hockey against Fairfax Media is a reminder of the need for "widescale reform of defamation law in Australia".
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Mr Hockey, who has been in Beijing and Hong Kong to meet Chinese government officials this week, declined to comment following Tuesday's judgment.
Fairfax Media contacted 16 Coalition MPs after the judgment was delivered, but just two would speak publicly about the result. Several questioned the wisdom of having brought the case against Fairfax Media, while others applauded the move.
Following the ruling, Mr Wilson, a vocal and consistent proponent of freedom-of-speech law reform in Australia who was appointed Human Rights Commissioner by Attorney-General George Brandis soon after the last election, said there should be a "limited role for defamation law".
"Free speech shouldn't be restricted under defamation law simply because there is a general injury to a person's reputation. The test should be set higher around explicit harm and material loss," he said.
"This decision is a reminder that our commitment to free speech needs to be consistent, reflected in law and not just rhetoric."
Liberal National MP Ewen Jones, a friend of Mr Hockey, said he remained a "massive fan" of the Treasurer but "with the press, he just cannot take a trick".
"The budget was good and he has his mojo back in Parliament.Inside the party room, he has gone a long way back to being 'Sunrise Joe' and it has been that way for a while," he said.
NSW Liberal MP Craig Kelly said he believed the " 'Treasurer for sale' headline was a bridge too far, though you guys can put us under vigorous examination".
Mr Kelly said the Treasurer had an unenviable task to bring the budget back to surplus and the nature of his job meant he had to make unpopular decisions.
"... I thought he was probably bringing a case for all members of Parliament. There has to be a line between vigorous criticism and going over the top. You need a thick skin, but it's also important there is a line in the sand about what is acceptable and not acceptable," he said.
Other colleagues of Mr Hockey, who has endured a difficult 18 months in the job after his first budget was roundly criticised for breaking promises and being unfair, were less generous in their assessment of the decision to sue.
"Politicians are fair game and people should be able to speak freely," one MP said.
"I didn't see much in the headline and I've seen worse things said about Joe. But he obviously took it very personally."
A second colleague said it was "not a good look for the Treasurer to pocket $200,000. Maybe he will put an extension on his house."
A third colleague said there was a perception in the party room that Mr Hockey had had a "good few months, people aren't as down on him".
On Tuesday evening, Liberal Senator Arthur Sinodinis said Mr Hockey was "not a bloke who can be pushed over, or bought".
"I can tell you no-one owns Joe Hockey," he told the ABC's Radio National.
"I resent implication politicians can be bought. I go to lots of lunches and dinners, you don't have to buy access to any of us."
