Malcolm Turnbull has broken his silence, defending his decision to stay out of the Wentworth by-election.
It follows criticism from Liberals he should have helped the party retain the seat he held from 2004 until quitting parliament in August after being replaced as prime minister.
"I am out of partisan politics and so that is it," the former prime minister told reporters in Sydney on Tuesday.
"I will continue to have things to say about important matters of public interest, but I am not engaged in politics any longer. I'm retired."
Independent MP Kerryn Phelps still appears on track to win the by-election and secure the previously safe Liberal seat, as the government shows no signs of concern about a minority-held parliament.
Malcolm Turnbull was all smiles as he went for a stroll with wife Lucy. Source: SBS News
The count on Tuesday afternoon had Dr Phelps on 51.05 per cent of the two-candidate preferred vote, ahead of Liberal candidate Dave Sharma by 1554 votes.
Mr Turnbull had been holidaying in the United States after his resignation sparked the by-election, but returned to Australia on Monday.
Prime Minister Scott Morrison said numerous approaches - including from Mr Sharma himself - for support in the by-election were turned down by Mr Turnbull.
While Mr Turnbull tweeted his support for Mr Sharma when he was preselected, he remained silent throughout the campaign.
In the first question time since Saturday's by-election, Opposition Leader Bill Shorten zeroed in on the poor result, asking Mr Morrison: "Why is Malcolm Turnbull gone but you're still here?"
Mr Morrison said voters had expressed their anger about the events of August, but noted Labor's vote in Wentworth had also gone backwards.
If, as expected, Dr Phelps wins the seat, she will push the coalition into minority government.
She will be one of six crossbenchers to the coalition's 75 members and Labor's 69.
Mr Morrison told parliament his warning about an undermining of confidence if the government did not retain the seat had come true.
An ANZ-Roy Morgan survey showed consumer confidence took its largest fall since May 2012.
"The outcome and uncertainty of the election on the weekend did produce the result that I indicated that it would," Mr Morrison said.
However, he said the government had been working constructively with crossbench MPs to pass laws and would continue to do so.
Once confirmed as winner, Dr Phelps wants to hold talks with the government on asylum seekers, climate policy and a national integrity commission.
