- A party room meeting at midday could result in a leadership ballot
- Prime Minister Malcolm Turnbull says holding the ballot is conditional on him being presented with a petition with 43 signatures
- Peter Dutton, Scott Morrison and Julie Bishop are contenders for the top job
- Advice on Peter Dutton's eligibility to sit in Parliament is expected to be delivered to Malcolm Turnbull at around 8.30am
- 13 government MPs have resigned from the frontbench
Australia is all-but-certain to have a new prime minister by the end of the day, with Peter Dutton, Julie Bishop and Scott Morrison competing for the support of their Liberal colleagues at an anticipated meeting at midday.
Prime minister Malcolm Turnbull said he would call the meeting once he received a petition with the names of 43 colleagues.
But pressure is building for the meeting to go ahead before politicians leave Canberra on Friday afternoon. State presidents of the Liberal party branches have unanimously demanded a speedy resolution to the ongoing leadership crisis.
Three contenders vie for the top job
Foreign minister Julie Bishop has confirmed she will be a candidate if a second spill takes place later today, throwing the Liberal party leadership into a three horse race.
Former Home Affairs minister Peter Dutton was the first to declare his candidacy, demanding a second ballot after losing to Mr Turnbull by seven votes on Tuesday.
The third choice is treasurer Scott Morrison, seen by some in the Coalition as a compromise between Ms Bishop's moderate views and Mr Dutton's strong conservatism.
Mr Turnbull said he would step aside if he loses a spill motion on Friday and will not contest the subsequent ballot.
He has also pledged to quit the parliament altogether if the spill motion succeeds today, potentially triggering a by-election in his Sydney seat and threatening the government's slim one-seat majority in the House of Representatives.
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Turnbull demands legal answers
Mr Dutton has released advice from a second constitutional lawyer claiming he is eligible to sit in the parliament, hours ahead of the anticipated ballot.
The prime minister is waiting for advice from the solicitor-general, the government's top solicitor, expected to arrive by 9am on Friday morning.
Mr Turnbull said it was critical that questions about his challenger's eligibility to sit in parliament were resolved before another leadership ballot.
Labor has already released conflicting advice and leading constitutional lawyers have described the case as a grey area.
The question comes down to whether Mr Dutton’s stake in a trustee company that operates two childcare centres constitutes a conflict of interest, given the centres receive subsidies that were legislated by the Turnbull government.
Mr Dutton's latest advice from well-respected constitutional lawyer David Bennett QC argues the childcare centres do not provide services “for” the Commonwealth – rather they are just reimbursed for services they provide to parents.
In an extraordinary press conference on Thursday, the prime minister criticised rebel MPs within his party for staging an “internal insurgency”.
"I have never given in to bullies, but you can imagine the pressure it's put people under," he told reporters.
“They’re hard to stop,” he said.
“What we have witnessed at the moment is a very deliberate effort to pull the Liberal Party further to the right.”
If he loses support for his prime ministership, Mr Turnbull intends to quit Parliament, threatening the Coalition's one-seat majority in the House of Representatives.
"I believe former Prime Ministers are best out of the Parliament."
Morrison considering challenge
Treasurer Scott Morrison has reportedly entered the contest for the Liberal party leadership as senior ministers line up to quit Mr Turnbull's frontbench.
Mr Morrison emerged as a contender after key ministers Mathias Cormann, Michaelia Cash and Mitch Fifield deserted Mr Turnbull in a move that all but spelled the end of his prime ministership.
It comes as the Turnbull government successfully adjourned Parliament amid the battle over the Liberal leadership.
Former Home Affairs minister Peter Dutton has been gathering support for a second tilt at the leadership, SBS News understands the Treasurer is actively canvassing to see if he has enough support to run as an alternative candidate.
Senator Cormann said it was with "great sadness and a heavy heart" that the three ministers advised the prime minister that he no longer had the support of the majority of the party room and offered to resign.
The three ministers repeated their concerns on Thursday morning after learning that five Cabinet ministers, who supported Mr Turnbull in Tuesday's ballot, had switched their allegiance.
"We advised the prime minister of our judgement, that he no longer enjoyed majority support in the party room, and that we believe we needed to - that he needed to facilitate an orderly transition, and that we should a party room meeting," Senator Cormann told reporters.
The influential Finance Minister said he now believed Mr Dutton was the best person to lead the party to the next election.
Exodus continues
The three former allies of the Prime Minister join a growing list of ministers that have offered their resignation from the frontbench.
Mr Turnbull had tried to persuade ministers to continue in their roles even if they had backed his rival in Tuesday's ballot, but several are now determined to quit.
Health Minister Greg Hunt, who is likely to run as Peter Dutton's deputy in a second leadership ballot, is among the latest to go.
Trade Minister Steve Ciobo, Human Services Minister Michael Keenan and Citizenship Minister Alan Tudge have all been to see the prime minister to tell him they cannot to serve under him.
Assistant Minister James McGrath, a former Turnbull loyalist, quit for the second time on Wednesday and insisted the Prime Minister accept his resignation.
"Like Peter Dutton has said, we must do everything in our power to stop Bill Shorten ever becoming Prime Minister," Senator McGrath posted on Facebook.
Michael Sukkar and Zed Seselja have also insisted the Prime Minister accept their resignations after declaring their support for his challenger Peter Dutton.
Dutton requests second spill
Earlier Thursday morning, Peter Dutton spoke to the Prime Minister to request a second party room meeting be held to vote on the Liberal leadership.
The former Home Affairs minister said he believes he has the numbers to beat Mr Turnbull this time, after losing Tuesday's ballot by 13 votes.
"Earlier this morning I called the Prime Minister to advise him that it was my judgement that the majority of the party room no longer supported his leadership," Mr Dutton said in a brief media appearance on Thursday.
"As such, I asked him to convene a meeting of the Liberal Party at which I would challenge for the leadership of the parliamentary Liberal Party."
Meanwhile, a Nationals MP has pledged to quit the government and sit on the crossbench if there is another leadership spill, in a move that could threaten the Coalition's one-seat majority in the House of Representatives.
"The constant rotation of prime ministers by both the Labor Party and the Liberal party, I cannot condone," the Kevin Hogan, the MP for Page said.
He is one of several MPs to express frustration at the latest leadership crisis to dominate Canberra.
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Dutton's tactics
Since losing Tuesday's leadership ballot by 13 votes, Mr Dutton has been working the phones and embarking on a charm offensive in the media, trying to secure the extra seven votes he needs to roll Mr Turnbull.
He went on Melbourne radio in a bid to let voters know who he is, revealing his idea for a royal commission into electricity and fuel prices.
But his plan to exclude household electricity bills from the GST copped a belting.
"That would be a budget blower, an absolute budget blower," Treasurer Scott Morrison told reporters in Canberra.
He said it would deprive the states and territories of $7.5 billion over four years.
Shadow Treasurer Chris Bowen said Mr Dutton's "crazy" proposal would mean cuts to health and education.
Mr Dutton has also pledged to cut Australia's immigration intake.
“I think we do have to cut the numbers (of migration) back, I haven’t got a number to give to you today ,” Mr Dutton said.
“I think immigration is incredibly important to our country I think it needs to be operating in our country’s best interests”.
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What comes next in the battle for the prime ministership?
* A leadership spill will be held during today's party room meeting at noon today if the prime minister receives a letter with 43 Liberal MP signatures asking him to do so.
* Before that Mr Turnbull expects to receive legal advice at 8.30am over leadership rival Peter Dutton's eligibility to sit in parliament.
* If it fails to clear Mr Dutton over a possible breach of section 44 of the constitution, the meeting will not go ahead and it is likely he would be referred to the High Court by the parliament when it next sits.
* In that case, Turnbull would remain leader and prime minister.
* If Dutton is not found to potentially be in breach of the constitution, it would clear the way for the Liberal partyroom meeting.
* Treasurer Scott Morrison and deputy Liberal leader Julie Bishop are canvassing support to run against Peter Dutton.
* Under party rules, the person with the fewest votes in a three-way race is knocked out, then it becomes a two-candidate vote.
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* The winner of the Liberal partyroom ballot will become parliamentary party leader.
* Malcolm Turnbull would then tender his resignation to the governor-general and resign from parliament.
* The new Liberal leader would be recommended to the governor-general to become Australia's 30th prime minister.
* In parliament, which does not sit again until September 10, Labor could move a "no confidence" motion to test the government's majority. The Liberal-National coalition has a one-seat majority but some Nationals MPs have pledged to sit on the crossbench if the prime minister changes.
* The government already has budget "supply" until July 2019.
* The governor-general would issue the instrument of appointment and oath of office to the new prime minister, and most likely swear in a handful of key cabinet ministers.
* If Turnbull resigns immediately a by-election will be needed in the NSW seat of Wentworth.
* A half-Senate and full lower house election is due by May 18, 2019.
