Prominent conservative MPs plan to use the impending defection of Liberal senator Cory Bernardi to bolster their influence inside the coalition rather than join an exodus from the Turnbull government.
The South Australian is tipped to end months of speculation about his future on Tuesday by informing the Senate he's quitting the coalition to sit on the cross bench.
From there he's expected to form a new party based on his Australian Conservatives movement with the backing of more than 50,000 members.
In the latest post to its website, the group hailed 2016 as "the year of the underdog" and promised this year would be "massive".
It trumpeted the rejuvenation of centre-right politics on the back of the Brexit referendum result in the UK and Donald Trump's victory in the US, tipping similar outcomes in France and the Netherlands.
The new party could have the backing of mining magnate Gina Rinehart.
Senator Bernardi's move follows the first Newspoll of the year showing a surge in support for Pauline Hanson's One Nation as voters dumped the coalition.
But his defection is likely to be a lone-wolf attack on the coalition at this stage.
Nationals MP George Christensen, the other conservative coalition figure said to be considering quitting the government, insisted he was loyal to the party and its leader Barnaby Joyce.
But that commitment came with a sting in the tail.
"Look, if there's a move away, I suppose it sends a signal to the leadership that we cannot abandon conservative causes, conservative principles and conservative policies," he told reporters in Canberra.
Mr Christensen said Senator Bernardi had not approached him to join a breakaway party but said it was a "great shame" his conservative ally was leaving the coalition because he was a wasted talent.
His defection would send a message to the coalition that its base is "disgruntled" and that it needs to more strongly embrace "conservative principles".
Another conservative, veteran Liberal senator Eric Abetz, said he was committed to the party and its founding principles.
Senator Bernardi's move coincides with a doubling in support for One Nation in the seven months since the federal election.
As the coalition's primary vote support went backwards in Newspoll - down to 35 per cent and its lowest level since Malcolm Turnbull toppled Tony Abbott as prime minister - backing for the minor party reached eight per cent.
A jubilant Pauline Hanson lapped-up questions about a possible prime ministerial tilt, saying it would be a "privilege and honour" if ever she were to lead the country.
The only bright spots for the coalition, as parliament returns from its long summer break, is that Labor has failed to capitalise on the coalition slump and Mr Turnbull stretched to 12 points his lead over Opposition Leader Bill Shorten as preferred prime minister.
After preferences Labor leads the coalition 54-46 per cent, a result if repeated at an election would give the party a 35 seat majority in parliament.
The opposition sought to make the most of coalition angst over Senator Bernardi and opinion polls.
Mr Shorten, addressing the first Labor caucus meeting of the year, said the prime minister was seriously out of touch and the government in turmoil.
Cabinet minister Arthur Sinodinos said all established political parties have to do more to win over uncommitted voters or those who feel marginalised.
"That's a challenge, that's an opportunity, but I'm not going to slash my wrists over it," he told ABC Radio on Monday.
Senator Sinodinos conceded the coalition had more work to do to convince Australians that they've got the best policies.
"You use the polls as a wake up call to make yourself determined to do things better, to be more responsive to people's concerns."
