Indigenous Senator Jacinta Nampijinpa Price has abandoned her bid to become deputy leader of the Liberal Party after Sussan Ley won the leadership ballot on Tuesday morning.
Ms Ley, a moderate who will become the first female leader of the Liberals in their 81-year history, won the ballot 29-25 over Angus Taylor.
After Mr Taylor, a conservative, was defeated, Senator Price did not contend for the deputy leadership ballot, which was won by Queensland MP Ted O'Brien.
In a statement, Senator Price congratulated Ms Ley, and said whilst she was "disappointed" Mr Taylor was not elected leader, she respected the decision.
"I was contesting the position of Deputy Leader on a ticket with Angus Taylor, and given the outcome with respect to the position of Leader of the Liberal Party, I chose not to contest the position of Deputy Leader," she said.
"Ultimately, I want the best outcome for all Australians – that is why I entered politics, and why I continue to serve as a member of the Australian Parliament."
The vote comes days after Senator Price defected from the National Party room.
She announced on Sunday her plans to run for Mr Taylor's deputy leader, who had welcomed her to the Liberals after her allegiance switch last week.
Senator Price said she recognised she was new to the party and was "grateful" to be afforded the chance to put herself forward as deputy "in those circumstances".
"If the Coalition is to offer hope and a way forward for our nation, unity must prevail more within us now more than ever," she said.
"That is why I will work with Sussan Ley and Ted O'Brien to ensure the Coalition is a formidable Opposition to the Albanese Labor government, and presents a compelling alternative to the Australian public at the next election."
Ms Ley's victory will be seen as a move by the Liberals away from the more right-wing elements of the party towards a more "broad church" as championed by former PM Robert Menzies.
While Senator Price is popular amongst conservative commentators who have campaigned for her to lead the party to the next election, especially after her success in the referendum campaign, the Coalition's heavy election defeat has put some blame on the right side of the party.
Criticism of the Opposition's use of culture wars - including attacks on Welcome to Country and the Aboriginal flag - has been seen by many in the wash-up from the election to have been damaging.
After arguing the Coalition would "Make Australia Great Again" at a gathering in Perth, and the subsequent emergence of a photograph of her wearing a 'MAGA' hat, Senator Price seemed to be sidelined from campaigning by the Coalition, something she told Sky News was "absolutely frustrating".
"Watching the way the media, you know, like a bunch of vultures, will absolutely goad you on one particular issue and smear you with, you know, another country's president," she said last week.
"That was a significant role... some of the media played."
Despite positioning the Coalition as supporters of remote and regional communities in the NT, the vast electorate of Lingiari saw a surge towards Labor, whilst the CLP's foothold on the NT after last year's Territory election didn't translate into a decisive swing, with Labor also holding onto the Darwin seat of Solomon for the fourth consecutive term.
