Nationals file for divorce as Liberal coalition breaks

COALITION BREAKS UP:

* The National Party has split from its partnership with the Liberal Party following its defeat at the federal election

* The split happened after Nationals leader David Littleproud and Liberal leader Sussan Ley failed to reach a coalition agreement

* The two parties normally strike a fresh agreement after every election, which determines the make up of its frontbench and portfolio allocations, as well as shared party positions

* State divisions have their own agreements, with NSW and Victoria the only states where a formal arrangement persists, while the parties remain merged as the Liberal-National Party in Queensland

* Mr Littleproud indicated there were four sticking points on policy negotiations the Nationals would not back down on. The Liberals want to open everything up for discussion following an electoral shellacking

* The last time the coalition divorced was in 1987 for about four months

POLICY WISHLIST:

* The Nationals want nuclear power to be part of the energy mix, but haven't recommitted to the full policy which included seven power plants across Australia

* A $20 billion regional investment fund would be mostly funded through resource windfalls in the budget over four to five years

* The fund would disperse $1 billion a year for regional and rural Australia, including on infrastructure, education and healthcare

* Big stick divestiture powers that would force large supermarkets to sell stores if they're found to be engaging in uncompetitive behaviour

* Expanding universal service obligations which covers landlines and payphones to mobile phones so all Australians have telecommunication access across regional Australia

* Ms Ley said she wouldn't make any captain's calls on Liberal Party policy when she was elected leader and would put everything on the table within the partyroom

* Moderate Liberal MPs have called for the nuclear policy to be dumped, citing electoral backlash in metropolitan seats. The Nationals maintain the policy is popular but the price tag was subject to a Labor scare campaign

WHAT NEXT?

* Sussan Ley remains the opposition leader and the Nationals won't sit in shadow cabinet, meaning the half-dozen MPs who used to sit around that table take a salary cut

* The Liberals have 28 seats out of 150 in the lower house, while the Nationals have 15, meaning the split doesn't impact Labor's ability to command the house with its majority of more than 90 seats

* Labor still needs the Greens to pass legislation in the Senate, where the Liberals have just over 20 senators and the Nationals four.

* Labor and the Liberals still have the numbers to force legislation through without the Greens or crossbench support.