Australian senator to resign from gov't to form far-right party

Controversial Australian Senator Cory Bernardi is set to resign from the Liberal Party - and therefore the government - in order to chair a breakaway far-right political party, local media reported on Monday.

Bernardi, who has long been critical of the center-right policies pursued by Prime Minister Malcolm Turnbull, will resign within 48 hours and ahead of Parliament's return on Tuesday, according to a Fairfax Media report.

The conservative and often outspoken senator has indicated his desire to breakaway from the coalition government, with rumors beginning in July last year when he founded the Australian Conservatives website, which he said was created to "unite the Liberal Party."

Government representatives are still hoping that is the case, however; some MPs have labelled the report as "speculation," while Education Minister Simon Birmingham told the Australian Broadcasting Corporation (ABC) he expects Bernardi to "stand by" his commitment made to the government.

"Every comment I've ever seen Cory make, including over recent months, has been about the importance of Liberals, Nationals, conservatives - all those in the right of center - working together and working as a strong coalition," Birmingham said on Monday.

"I'm confident that Cory will stand by his words."

Bernardi has refused to comment on the report, but it has also been revealed he set up a second website called Australian Majority, which features a political logo resembling that used by U.S. Republican presidential candidate Ted Cruz.

The move could be disastrous for the government, which holds just a one seat majority in the House of Representatives. An extra crossbench senator could take even more power away from the government, meaning fewer bills are likely to pass without the far-right senator's approval.

The government's issues were further compounded on Monday when the latest Newspoll revealed support for the Malcolm Turnbull-led coalition had fallen to its lowest point since predecessor Tony Abbott was ousted from office, while the poll also showed minor parties including Pauline Hanson's far-right movement, One Nation, gained significant traction with voters.

Support for Turnbull's government slipped to 46 percent while Labor's soared to 54 percent in the two-party preferred stakes - or after preferences - while it was also revealed that a record 29 percent of voters would not give either major party their first preference - if a vote was held today.

It means support for minor parties and independents rose to that 29 percent mark; the Greens remained steady at 10 percent, while support for One Nation was at an equal record-high of 8 percent.

Hanson said she was "thrilled" that her party was resonating with the Australian people, adding there was no limit to how much success One Nation could have if they continue to "listen to" Australian citizens.

"I'm so surprised and actually thrilled with the support we're getting Australia-wide," Hanson told the Seven Network on Monday.

"Politics, you can be up high one day and down low the next.

"As long as I keep listening to the Australian people and voicing their concerns, we'll see where we go."

Australia's Parliament returns for its first sitting session for the year on Tuesday.