The Nationals have formally split with the Liberal party, breaking up the Coalition for the first time since the 1980s due to major policy differences.

Nationals leader David Littleproud said MPs had made the shock decision not to enter into a new Coalition agreement with the Liberals in talks at Parliament House on Tuesday, after a breakdown in negotiations with new opposition leader Sussan Ley.

Littleproud said nuclear policy, a $20bn regional Australia future fund, forced break-up powers in the supermarket sector and essential services in the bush were key sticking points in the decision.

The split means the two parties will not be together in opposition against Labor, which smashed the Coalition in the 3 May election and is on track to have more than 90 seats in the House of Representatives.

Nationals MPs won’t sit in the shadow cabinet and the minor party will make its own policy decisions for the coming term of parliament. Littleproud said the Nationals would field their own roster of spokespeople on to speak on government decisions.

“The National party will sit alone on a principle basis, on the basis of
looking forward,” Littleproud said.

“It’s on a principle position of making sure that those hard-fought wins are maintained and respected, we continue to look forward.”

It is the fourth time the Coalition has split formally in the federal political sphere, and the first time since a short break up over the ‘Joh-for-PM’ push, which aimed to have Queensland premier Joh Bjelke-Petersen led the Liberals and Nationals in Canberra.

The Liberals and Nationals did not enter a coalition after Gough Whitlam’s 1972 election victory, but ran together at the 1974 poll.

Nuclear policy was a major sticking point in Tuesday’s decision. Littleproud said his party remained committed to the introduction of nuclear power in Australia, saying renewable energy had lost its social license and country communities wanted change.

Ley had promised all opposition policies will be subject to careful review and consultation, ruling out “captain’s calls” ahead of a formal election post-mortem.

Littleproud flagged the two parties could reconnect in the future.

“We have had a coalition of over 80 years and I suspect we will have one in the future. It has been broken before. What this is about is taking a deep breath and say to the Australian people this is time apart [for] us to be better, focus on them.

“This is a healthy part of our democracy which should be proud of.”

More details soon