Outgoing Liberal Party honorary treasurer Phil Higginson will be succeeded at this weekend's Federal Liberal Council by businessman and Joe Hockey confidant Andrew Burnes, as the party moves to a pre-election footing in preparation for an poll that could come as early as spring.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
As the party machine moves into fighting mode, a compromise deal may also involve the subbing out of the moderate-backed vice-president Tom Harley.
Mr Harley could make way for the former Howard government minister Bruce Baird under the deal, which is said to be supported by leading moderates including key Abbott government ministers Julie Bishop and Christopher Pyne.
The experienced Mr Baird is also the father of the current NSW Premier, Mike Baird.
His elevation would resolve long-standing disquiet over the Mr Harley's perceived conflict of interest between his political position and his professional lobbying business activities.
Mr Harley was re-elected in 2014 as one of four vice-presidents against the wishes of Prime Minister Tony Abbott, along with conservatives Rosemary Craddock, Karl Morris and Fay Duda.
It is understood there are eight candidates for the vice-president position this weekend and it is not known whether Mr Harley will withdraw.
Contacted on Tuesday by Fairfax Media, Mr Harley refused to be drawn on party matters and would not even confirm that he had declined to stand. In any event, insiders say he would not have the numbers against Mr Baird.
Mr Burnes is a close friend of Mr Hockey but is also friendly with several senior ministers Mr Abbott.
He was a conspicuous daily presence at recent defamation proceedings in the Federal Court brought by Mr Hockey against Fairfax Media, and was also along for the ride with Mr Hockey at his post-budget National Press Club Address in May.
The personable millionaire businessman made his fortune in the travel industry via his company, AOT, and is said to be very well connected in the business world - a useful quality when convincing reluctant corporates to open their wallets to fund the Liberal Party's re-election campaign.
A senior Liberal MP enthused about Mr Burnes' appointment, describing him as "a good friend of pretty well everybody".
His appointment brings to an end the tenure of the more polarising Mr Higginson, who became embroiled in a heated public stoush with the Liberal Party's federal director Brian Loughnane over federal office and campaign accounts, and the extensive influence of Mr Abbott's chief of staff, Peta Credlin.
The uber-powerful Ms Credlin is married to Mr Loughnane, leading Mr Higginson to question whether allowing the pair to occupy the two key offices had led to the appearance of a conflict of interest.
He said it was unlikely that party members and officials would be inclined to speak frankly to the federal director about any concerns with the operation of the Prime Minister's office, when they would, in effect, be complaining to Mr Loughnane about his wife.
Amid the public argument, Mr Higginson delayed verifying Liberal Party accounts for a sustained period, while seeking further and better particulars.
That stand-off saw his working relationship with Mr Loughnane break down entirely and resulted in Mr Higginson effectively resigning - although that was never finalised.
Mr Higginson offered his best wishes to Mr Burnes in the new role.
This weekend's federal council looks like being a straightforward affair without the fireworks of last year and without any significant disagreements over policy, according to inside sources.
While a federal election is not technically due until spring next year, chatter around Canberra suggests a snap poll is a very real possibility if Mr Abbott decides to capitalise on difficulties for Labor's Bill Shorten arising from the royal commission into trade union corruption.
Addressing his final ALP caucus meeting before the parliamentary winter break, Mr Shorten reportedly told Labor MPs they may not return to Canberra for further sittings this side of an election.
