Liberal leadership crisis: MPs move to oust Malcolm Turnbull in late night second strike against PM

Jim Molan, a vocal and conservative senator, says he is concerned about the Liberal Party's direction and that's why he has backed Peter Dutton. 

"There is a view that the Liberal Party has moved too far to the left over recent years – it is a view that I share. Whilst this government has achieved a great many things, the perception that we have moved too far to the left has resulted in many of our supporters leaving us for cross bench parties," Molan, a former major general in the Army, says.

Fairfax Media has spoken to Mathias Cormann and Dan Tehan. Cormann said he has not resigned – an act which, if true, would signal he was no longer supporting Malcolm Turnbull’s leadership. Tehan has also been reported as shifting to Dutton. Buthe says he will not vote against a sitting PM.

There is a lot of action inside Malcolm Turnbull's office tonight.

Treasurer Scott Morrison and Defence Industry Minister Christopher Pyne were in the PM's office just before 7pm. Pyne and Turnbull left shortly after with Turnbull on the phone.

Foreign Minister Julie Bishop was also in there just before 7.15pm, waving to the media and giving them a big "Hello!"

In another big development tonight, Attorney-General Christian Porter has confirmed he is seeking advice from the solicitor-general on Peter Dutton's eligibility to sit in Parliament.

The issue arises from two childcare centres run by Mr Dutton's wife which have received $5.6 million in federal government payments. The centres are owned by a trust of which Mr Dutton is a beneficiary.

Liberal MPs have confirmed to Fairfax Media there is a petition circulating Parliament House tonight calling on Malcolm Turnbull to call a party room meeting for another leadership spill.

It is a strong indication Peter Dutton and his supporters believe they now have the numbers to topple Mr Turnbull as leader.

But they will need a majority of the Liberal party room - 43 out of 84 members - to put their names to the petition to force Mr Turnbull to call a meeting and spill the leadership.

If successful the meeting could be held as soon as tonight, or perhaps tomorrow.

On the section 44 issue, vocal Turnbull backer Craig Laundy says Peter Dutton should release his legal advice "to allay any concerns that might be there". 

Tony Abbott says it was "strange" that Malcolm Turnbull didn't simply knock Peter Dutton's constitutional eligibility question on the head, citing the pre-existing legal advice. 

Abbott questions whether "dirty tricks" have been played, potentially by the Turnbull camp, to push the story and hurt Dutton.

He asks if it's "one last throw from a desperate incumbent"?

Tony Abbott has been up on radio station 2GB, helping.

"It's no big secret that I'm no fan of the incumbent," he says of Malcolm Turnbull, expressing confidence Peter Dutton would be a great prime minister.

Sky News is reporting that Attorney-General Christian Porter has asked the solicitor-general Stephen Donaghue to look at whether a section 44 breach arises from Peter Dutton's ownership, through a trust, of a childcare company that has received millions in government funding. 

The business community and tax experts warn Australia risks falling behind the developed world in its international competitiveness now that tax cuts for big business are off the political agenda, and worry that it could take years before the issue is revisited by which time the damage will have been done.

PwC corporate tax partner Paul Abbey said Australia was forgoing investment opportunities and growth. "The electorate needs to appreciate the significant risk the country adopts by challenging this trend," he said.