Riverina MP Michael McCormack has lost his position as Deputy Prime Minister and National Party leader after a challenge by Barnaby Joyce on Monday morning.
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Nationals chief whip Damian Drum confirmed the result just after 11:50am but did not disclose the number of votes for each candidate.
Queensland Senator Matt Canavan reportedly moved a spill motion in the party room meeting to declare the leadership position vacant.
Mr Joyce was then returned as party leader more than three years as a backbench MP for New England following his resignation in the wake of an extramarital affair scandal.
If Mr McCormack loses his Transport, Infratructure and Regional Development ministerial portfolios as well, his salary will likely be cut down from about $416,000 to $200,000 per year.
Mr McCormack spoke briefly to SBS TV, who asked him about a potential leadership spill this morning while he was on his way to the party room meeting..
"Who knows? Who knows what the future holds? Que sera, sera. Whatever will be, will be. The future is not ours to see. I'm quoting Doris Day. I've got to go now," Mr McCormack said.
Mr Joyce told Sunrise this morning that Mr McCormack was a "good bloke" but the issue was the next federal election and the need for the National Party to have "clearly identifiable" policies.
Mr McCormack said over the weekend that he was focused on flood and pandemic recovery rather than leadership speculation.
"If others within government think that they should be talking about themselves and their ambitions at this difficult and challenging time then that is a matter for them," he said.
Former Riverina MP Kay Hull dismissed the issue on Saturday and described Mr McCormack's leadership as "strong, supported and resilient".
Mr Joyce previously tried to challenge Mr McCormack for leadership of the Nationals in February last year but was defeated by a margin that has never been officially disclosed.
Mr McCormack won the leadership position in February 2018 in the wake of Mr Joyce's resignation as Deputy PM due to an extramarital affair with a staff member.
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