The demands that led to the split included a $20 billion Regional Australia Fund, stronger market regulations, improved regional mobile coverage, and support for nuclear energy.

Following the split, the Liberals hold approximately 28 lower house seats while the Nationals have 15, which is insufficient to block legislation against Labor's majority.

Despite the dissolution of their formal alliance, experts predict that the two parties will continue to collaborate on shared interests in parliament, although their voting patterns may diverge on specific issues.

Historically, the relationship between the Liberals and Nationals has been fraught with disputes and power struggles, leading to previous splits in 1972 and 1987, though both parties eventually reunited.

This separation may provide both parties with an opportunity for self-reflection and strategic reorientation, but it also leaves them without a unified platform for upcoming elections.

The Nationals, now classified as a minor party, face financial disadvantages and reduced parliamentary influence, complicating their ability to challenge the government.

In a significant political shift, the Coalition between the Liberal and National parties in Australia officially ended in May 2025, a decision marked by ongoing internal tensions and historical discord.

David Littleproud, the leader of the Nationals, announced the split on May 20, 2025, following the Liberal Party's refusal to agree to four key policy proposals put forth by the Nationals.

The split was foreshadowed by a meeting in Albury on May 16, where both parties recognized their inability to reach consensus on crucial policies.

The breakup reflects a growing trend of populism in regional Australia, with parties like One Nation challenging the Nationals' traditional stronghold.

The split strengthens Littleproud's leadership within the Nationals, as there have been calls for a more aggressive advocacy for regional Australia.

Both leaders have expressed a desire for potential reconciliation before the next election, with Liberal leader Sussan Ley remaining open to rejoining the Coalition.