Prime Minister Tony Abbott has dismissed as a "storm in a teacup" an internal party leak pointing to a major rift in the Liberal executive.
Two emails written by its federal treasurer, Phil Higginson, to executive members indicate he intends to resign over transparency and governance concerns.
Mr Higginson wrote that he felt "overwhelmed by the sheer vitriol" within the party, and took aim at the husband and wife duo of party director Brian Loughnane and Mr Abbott's chief of staff Peta Credlin.
He complained of a conflict of interest in the pair being in their positions, saying it was the "most serious current dilemma" facing the party.
But Mr Abbott has downplayed his complaints and restated his confidence in Mr Loughnane and Ms Credlin.
"I'm aware of that particular storm in a teacup but the treasurer signed off on the party accounts," he told the Nine Network on Tuesday.
"I'm not quite sure what the fuss is over."
Asked about Mr Higginson's resignation threat, Mr Abbott said: "If he wants to resign that is a matter for him".
In his emails, Mr Higginson argues a managing director would never have an executive assistant who was the wife of the chairman.
He also complained of delays in obtaining information about expenditure from Mr Loughnane, leading to delays in signing off on the party's accounts.
Mr Abbott also appears to be facing renewed pressure from within his own ministry, with Fairfax Media reporting seven frontbenchers are keeping a "watching brief" on his leadership.
Despite voting to support Mr Abbott against a spill motion put to the parliamentary party earlier this month, the unnamed ministers are reportedly discussing the timing of a potential move against him.
Asked about this, Mr Abbott said prime ministers were "always on probation".
"There is a sense in which every day you have to perform," he said.
"It is true of you, it is true of me, it is true of most of us. That is what I believe this government is doing."
He also dismissed the report, saying voters are "sick of the internals".
