John Barilaro will resign as NSW Deputy Premier and Nationals leader and quit state politics.
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But the Queanbeyan-based politician has ruled out following state Coalition colleague Andrew Constance into federal politics, saying he wouldn't run for the seat of Eden-Monaro.
Mr Barilaro said after more than 10 years in state parliament, and almost five as Nationals leader, he had "lost the fight" and wanted to start life after politics.
The 49-year-old said an ongoing defamation case he has brought against entertainer friendlyjordies was among the big reasons behind his shock resignation.
The announcement comes amid a major shakeup in the NSW government following Gladys Berejiklian's resignation on Friday due to an ICAC investigation.
Dominic Perrottet is set to become the next NSW premier after a factional deal was reportedly stitched up to clear the path for the Treasurer's elevation to the state's top job.
But Mr Perrottet will face a challenge for the leadership, with Planning Minister Rob Stokes confirming he would contest the party room ballot to give his colleagues a choice.
NSW will also have a new deputy premier and Nationals leader after Mr Barilaro's announcement early on Monday morning.
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Speaking to reporters in Sydney, Mr Barilaro said he'd been planning his resignation for some time and Ms Berejiklian's shock and sudden departure hadn't played "any part in his decision".
Mr Barilaro said with a new cabinet due to be sworn in later this week, it wouldn't have been appropriate to remain in his position only to resign shortly after.
"I have enjoyed every single day of it [career in politics]," he said.
"But it has taken a toll. It is tough on anybody in public life, to continue in this role under so much scrutiny."
Mr Barilaro has proven a controversial and at times divisive figure in NSW politics. He threatened to blow up the NSW Coalition government last year amid disagreement over a koala protection policy, before taking mental health leave in the fallout.
He cited the delivery of new local schools, including in Googong, Jerrabomberra and Bungendore, as among his proudest achievements as Monaro MP.
A new Nationals leader is expected to be picked at a party room meeting on Wednesday. Melinda Pavey, who holds the water and housing portfolios, has nominated to replace Mr Barilaro.
Regional Transport Minister Paul Toole is also considering putting his hand up.
The Liberals will meet on Tuesday to select either Mr Perrottet or Mr Stokes as their new leader and the state's next premier.
Mr Barilaro said after Wednesday's meeting he would start planning his exit from NSW politics, which would trigger a by-election in his southern NSW seat of Monaro.
Mr Barilaro's announcement via a statement early on Monday morning sparked immediate speculation that he was again eyeing a run at Federal Parliament.
He publicly toyed with the idea of running as the Nationals candidate in last year's by-election for the federal seat of Eden-Monaro, which overlaps parts of his state electorate.
Mr Constance also put up his hand to run in Eden-Monaro, before he withdrew his candidacy after Mr Barilaro denigrated him in the press.
Mr Constance, the NSW Transport Minister, on Sunday announced he would quit state politics to contest the federal seat of Gilmore.
At his press conference on Monday morning, Mr Barilaro immediately ruled out another tilt at federal politics.
"I'm going to be a keen watcher of politics, but not a participant," he said.
"I have no intention and no will that I'll be running for Eden-Monaro or for federal politics. I am leaving politics. I'm turning 50 in November and may be in a bit of a mid-life crisis, but I'm definitely thinking about what is next."
The NSW government, which is already in minority, is now facing three by-elections: in Ms Berejklian's seat of Willoughby, Mr Constance's seat of Bega and in Monaro.
Mr Perrottet paid tribute to Mr Barilaro as "one of the fiercest and most effective advocates for the people of regional NSW that our state has ever known".
ACT Chief Minister Andrew Barr said despite their "moments over the years", he and Mr Barilaro had been able to work constructively on cross-border issues.
Mr Barr wished Mr Barilaro well for his post-politics career, which he jokingly doubted would be as a sewerage detective - a reference to the brief spat between the pair after COVID-19 fragments were detected on the south coast in the early stages of Canberra's outbreak.
A number of Mr Barilaro's NSW Nationals colleagues paid tribute to him Monday, as did federal Nationals leader and Deputy Prime Minister Barnaby Joyce.
"During his political tenure, John was never afraid to put the issues of regional people first and accept the political consequences of doing so," he said.
"He was not a cookie cutter politician and I think that was the key to his success."
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