Support firms for Angus Taylor to win Liberal leadership, though Ley expected to achieve 'good result'
Support is firming for the conservative challenger Angus Taylor. (ABC News: Matt Roberts)
In short:
Backers of Angus Taylor and of Sussan Ley acknowledge that support is firming for Mr Taylor to become Liberal leader
Senator James McGrath, who supported Ley last ballot, declared his intention to support a leadership spill on Wednesday afternoon.
What's next?
A Liberal party room meeting has been called for 9am Friday.
Support is firming for Angus Taylor to topple Opposition Leader Sussan Ley, as more MPs abandon the shadow ministry.
Senators Michaelia Cash and James McGrath, — a supporter of Ms Ley — are the latest to resign, with Senator McGrath's decision to support a leadership spill all but guaranteeing the motion will succeed.
Dan Tehan also resigned from his post as Shadow Minister for Energy and Emissions reduction, announcing in a statement his intention to run for the deputy position.
A meeting of the Liberal party room to discuss the leadership has been called for Friday at 9am.
With Ms Ley holding onto power by only two votes since the ballot in May, only a couple of defections to Mr Taylor would be needed for him to succeed.
Liberal sources in both the Ley and Taylor camps acknowledge that support is firming for the conservative challenger Mr Taylor.
However one supporter of Ms Ley said she was still expected to receive a "good result".
Sussan Ley only narrowly won the leadership ballot against Mr Taylor in May. (ABC News: Matt Roberts)
McGrath's resignation a 'shift'
In a statement Queensland senator James McGrath confirmed his resignation.
"While I realise this news won't please everyone, it is important that Australia has a strong and effective Opposition," Senator McGrath said.
"I want to acknowledge the service of Sussan Ley as Leader of the Opposition, and I want to thank her for the privilege of serving in shadow cabinet."
James McGrath and Michaelia Cash both resigned from the shadow ministry on Thursday afternoon. (ABC News: Matt Roberts)
Speaking on ABC Afternoon Briefing, fellow Ley supporter Paul Scarr acknowledged Senator McGrath's defection was a "shift".
"James [McGrath] is a very good friend of mine, he has given his heart and soul … I know he will be doing it in what he believes is the best interests of the party," Mr Scarr said.
"Whoever wins tomorrow I think it is going to be reasonably close."
Earlier on Thursday a wave of Liberal shadow ministers, including senior Liberals Jonno Duniam and James Paterson, announced their intention to resign in order to support Mr Taylor in a leadership challenge.
But Senator McGrath's resignation is the first from an ally of Ms Ley.
Liberal MPs have also been privately canvassing colleagues over contesting for the deputy Liberal leadership.
The ABC has reported moderate Tim Wilson, the only Liberal to win a seat at the 2025 election, is among those sounding out colleagues.
However only sitting deputy Ted O'Brien and backbencher Jane Hume are confirmed to be running in tomorrow morning's contest.