The 23-second exchange risked offending Indigenous people, ethnic community leaders and Australia's Pacific neighbours in one fell swoop. Prime Minister Tony Abbott heads to a meeting in Parliament House on Friday. Credit:Alex Ellinghausen Mr Pyne conceded renewed discussion of a reshuffle would further damage the government's political strategy and messaging but said ministers must "get on with our jobs". Mr Hockey, who has been the subject of persistent undermining and suggestions he will be moved on by Mr Abbott, said colleagues including Julie Bishop, Malcolm Turnbull and Ian Macfarlane could be unhappy with him because he slashed their budgets.



He dismissed the idea of taking "one for the team" and stepping aside as Treasurer — likely to be replaced by Mr Morrison. Many MPs believe the fortunes of Mr Abbott and his Treasurer are inextricably linked.



Despite the public show of unity, MPs were privately seething on Friday after one of the strongest weeks for the government in some time — which saw the announcement of air strikes in Syria against Islamic State and the decision to take in 12,000 extra refugees from the conflict — was derailed by further airing of the government's internal tensions. The Canning byelection, which will be held in a week, is seen as a key test and a possible trigger if the government loses the seat, which it currently holds by a margin of 11.8 per cent.

Some in the Abbott government now believe a challenge could happen regardless of the result in the West Australian seat. Social Services Minister Scott Morrison and Prime Minister Tony Abbott on Friday. Credit:Alex Ellinghausen Mr Abbott has long planned an end-of-year ministerial shake-up, and bringing forward such a move could be designed to head off a leadership challenge, which Liberal MPs have been discussing in Canberra this week. Assistant Treasurer Josh Frydenberg and Assistant Immigration Minister Michaelia Cash are tipped to move into the cabinet if a reshuffle takes place, while parliamentary secretaries Kelly O'Dwyer, Michael McCormack and Christian Porter are tipped to move to the outer ministry. Hockey stood in the way of those wanting to cut spending sharply. Credit:Alex Ellinghausen

A report in the Daily Telegraph that Defence Minister Kevin Andrews, Employment Minister Eric Abetz and Industry Minister Ian Macfarlane, all of whom served as ministers in the Howard government, could go triggered the infighting on Friday, as the newspaper is seen as close to the Prime Minister and his office and many MPs saw the report as a sanctioned leak. A cabinet minister told Fairfax Media he was in no doubt the reshuffle story had come from the Prime Minister's office but said the office was so inept it had actually harmed, rather helped, the government. Assistant Treasurer Josh Frydenburg is being tipped to move into the cabinet. Credit:Justin McManus "It designed to send a message to the party room, 'Don't worry, Abbott gets it, and nudge nudge, you might be one of the people promoted in a reshuffle,' " the minister said, but instead it had destabilised the government. "Paranoia and conspiracy has replaced rational thinking."

The Prime Minister with Immigration Minister Peter Dutton on Friday. Credit:Alex Ellinghausen Another Liberal MP said the leak "shows the total self-absorbtion at the highest levels of government, where they don't care what impact their actions have out in the real world, and the real world is Canning". And a third political hard-head, who had supported Mr Abbott in the February spill motion, said simply that "whatever happens with Canning, he [Mr Abbott] is a dead man walking". Illustration: Ron Tandberg The Prime Minister's office denied any suggestion it was the source of the story. Some MPs, in turn, blamed the reported reshuffle on mischief-making frontbenchers.

Mr Dutton's unguarded comments were made while speaking to Mr Abbott, who earlier this week attended a meeting of Pacific island leaders in Papua New Guinea, where climate change was a key focus. As ethnic and community groups prepared to begin a roundtable discussion on resettling Syrian refugees on Friday, Mr Dutton said: "It's like Cape York time," in an apparent reference to the stereotypical view that there is a fluid approach to punctuality in remote and Indigenous communities such as those visited by Mr Abbott last month. Mr Abbott visited the Cape York region as part of his annual week in remote Indigenous Australia. "We had a bit of that up in Port Moresby," Mr Abbott replied, to which Mr Dutton said: "Time doesn't mean anything when you're about to be, you know, have water lapping at your door." Mr Abbott laughed awkwardly before Social Services Minister Morrison cautioned: "There's a boom up there", in reference to the microphone hanging just above Mr Dutton's head.

Mr Dutton noticeably stiffened in response and later brushed off questions when asked about the quip at a later press conference, Opposition Leader Bill Shorten said he treated a "report in the Daily Telegraph like a government press release" and that "this has become the Liberal version of the Hunger Games". Follow us on Twitter