Maverick Nationals MP George Christensen has put Malcolm Turnbull on notice he will defy the government and cross the floor to vote for a bank inquiry and the reversal of cuts to penalty rates as soon as former Nationals leader Barnaby Joyce's byelection battle is resolved.
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After polls showed Labor in a competitive position in the Bennelong byelection, Foreign Minister Julie Bishop meanwhile lashed out at Labor candidate Kristina Keneally, saying the former NSW premier had run "the most incompetent and corrupt Labor government in the state's history".
Ms Keneally will on Sunday launch her campaign in the byelection forced by former Liberal MP and tennis great John Alexander's dual British citizenship. A Labor win would rob Mr Turnbull of his outright majority in the Lower House of Parliament and force him to rely even more heavily on crossbench MPs.
But the government's troubles on its own side were underscored in stark terms after conservative Queensland MP Mr Christensen wrote to Mr Turnbull stating he would vote in favour of a banking inquiry and for the reversal of penalty rate cuts in defiance of Coalition policy.
Mr Christensen confirmed he had written to the Prime Minister to urge that the government "reconsider its stance on certain issues" and adding that he supported a royal commission or commission of inquiry into banks.
He also said he did not support "cutting the pay of local workers, whether those pay cuts emanate from decisions of the independent Fair Work Commission or whether they've come from dodgy deals between unions and big business".
"And I'm going to vote accordingly," he said.
The Mackay Daily Mercury reported Mr Christensen's letter stated he would not make trouble for the government while Mr Joyce is fighting to reclaim the seat of New England after being forced to stand aside because he had been a dual New Zealand citizen.
But once that byelection out of the way in early December, "the situation will be different", he reportedly wrote.
Fairfax Media reported on Saturday that another Queensland National, Llew O'Brien, said he may also cross the floor to back a bank inquiry. Queensland Nationals Senator Barry O'Sullivan said last week he would introduce a private member's bill for a bank inquiry.
The manoeuvring underscores the perilous position of the government with such a slender majority and MPs falling foul of the citizenship mess.
Mr Joyce is expected to return comfortably. But a ReachTEL poll commissioned by Fairfax Media showed a swing of 7 points to Labor in Bennelong, putting Ms Keneally close on 47 points to Mr Alexander's 53 after preferences. Another poll put the rivals on 50-50.
Opposition Leader Bill Shorten will on Sunday declare when he helps launch Ms Keneally's campaign that Bennelong is "no ordinary byelection" but a "chance to speak for Australia and send a message to Turnbull and the Liberals".
He will say Labor needs to change "9000 minds ... in 27 days" to win the seat.
But Ms Bishop, when asked about the narrow polls, went on the offensive against the high-profile Labor candidate, branding Ms Keneally "a former, failed Labor premier who's clearly only interested in her own political career" and who "presided over the most incompetent and corrupt Labor government in the state's history".
