The Coalition is on tenterhooks after Opposition Leader Sussan Ley announced three Nationals senators would lose their frontbench positions for splitting with the Liberals in the Senate.
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Ms Ley, who declared on Wednesday that shadow cabinet solidarity "is not optional" as the senators fell on their swords, faces the potential of retaliation as she seeks to regain control of the fractured Coalition.
Following a crisis meeting with Nationals Leader David Littleproud, Ms Ley said Bridget McKenzie, Ross Cadell and Susan McDonald had offered their resignations from her frontbench "as is appropriate, and I have accepted them".
All four Nationals senators voted against Labor's hate speech bill, which the Liberals helped the Albanese government pass on Tuesday night.
Their move to defy Ms Ley on the floor of the Senate was the second major challenge to her authority, since the Coalition temporarily split in May over energy and climate policy.
The loss of the three frontbench positions sparked talk of another Coalition split amid threats that other Nationals frontbenchers could resign in protest.
Ms Ley said she had warned Mr Littleproud, who announced on Tuesday night that the Nationals would not support the bill in the Senate, that frontbench Nationals senators "could not vote against the shadow cabinet position" agreed to on Sunday.
The Coalition agreement between the Liberal and National parties requires shadow cabinet solidarity, meaning frontbenchers must vote as agreed by the joint Coalition party room.
In breaching the convention, Ms Ley said, Senators McKenzie, Cadell and McDonald had created "an unfortunate circumstance and one that requires action".
"I thank David for understanding this," she said.
Queensland Nationals senator Matt Canavan also voted against the bill, but as a Coalition backbencher he is not bound by cabinet solidarity.
Ms Ley said that maintaining "a strong and functioning Coalition" was in the national interest and that shadow cabinet solidarity was "the foundation of serious opposition and credible government".
"I am proud of the Liberal Party I lead and my shadow cabinet team," she said.
She said she had asked Mr Littleproud to provide three new nominees for appointment to the shadow cabinet.
Senator Cadell said on Wednesday morning that he would accept any consequences, acknowledging that it would take "tolerance and understanding" on Ms Ley's part for him to remain in her shadow cabinet.
"If you commit the crime, you do the time," he told reporters.
But Senator McKenzie said it was a matter to be considered "between our party leaders".
"National Party MPs and shadow ministers were very clear on the consequences of our party room decision to oppose Labor's hate speech laws if our amendments were not passed," she said.
"I am very conscious of my responsibilities as a leader and have always sought to fulfill my role with integrity. I will continue to do so in this instance."
In a statement after the Nationals party room met on Tuesday night, Mr Littleproud said his party could not support the bill as drafted and would oppose it in the Senate if the party's amendments were not supported.
"This decision does not reflect on the relationship within the Coalition," the statement said.
"We cannot risk the consequences of getting this legislation wrong."
The Coalition had formally agreed to support the bill at a joint party room meeting on Sunday night.
Ms Ley said on Wednesday the shadow cabinet had, at this meeting, been "unanimous in its endorsement to support this bill subject to several amendments that we did then secure".
This meant that Nationals on her frontbench were "bound not to vote against the legislation," despite their party wanting further amendments.
"I acknowledge this was a difficult issue for the Nationals' party room and that they had three different positions across both houses of the Parliament," Ms Ley said.
"Some members voted against the legislation, another voted for it and several took a deliberate decision to abstain."
In a statement confirming her resignation from the frontbench, Senator McDonald said she supported "both the intent of the legislation and the Coalition's firm stance against anti-Semitism, hate and extremism".
Former deputy prime minister Michael McCormack, the only Nationals MP to support the hate speech bill in the House of Representatives on Tuesday - with his lower-house colleagues abstaining - said the fate of those senators who voted against it was up to Ms Ley, who would be unwise to sack them.
"I think if the Liberal Party were sensible, they would not be going down that path," Mr McCormack told Sky News on Wednesday.
"She is the Opposition Leader and so she gets to make that call."
The Riverina MP said he had voted for the laws "in line with his principles" as he wanted hate groups to be criminalised.
The bill passed the Senate 38 to 22 votes after 11pm on Tuesday.
Ms Ley told the House on Wednesday the Liberals had secured changes to strengthen the new hate laws and ensure they would not impinge on freedom of speech.
"We made sure that aggravated offences would capture radical Islamist extremist preachers," she said.
South Australian Liberal Senator Alex Antic also voted against the bill.
