Ousted opposition leader Sussan Ley has set a test for her successor after announcing her resignation from federal parliament.

Her departure as the member for Farrer will trigger a byelection in the regional NSW seat, which is expected to be a hotly contested four-way race.

Conservative MP Angus Taylor defeated Ley to become the next Liberal leader in a party room vote earlier in February.

In a statement announcing her resignation on Friday, Ley said it was crucial the Liberals held on to Farrer, saying it had been held by the Coalition without fail since its creation in 1949.

“The election of a Liberal member in the Farrer byelection is vital for the betterment and ongoing strength of our region and I know that Angus Taylor can and will ensure the party continues to enjoy the support, trust and confidence of the people of Farrer,” she said.

Among Coalition ranks, the vote is viewed as the first major test of Taylor’s leadership.

Ley outlined a list of her proudest achievements – including establishing a federal royal commission into antisemitism and setting clear policy directions on tax, industrial relations, energy, national security and families.

She also delivered a parting shot at Taylor.

“It will be for commentators and historians to measure the period of my leadership,” she said.

“I welcome the Coalition’s immediate re-adoption of many of these directions and policies in recent days and weeks.”

Taylor said Ley had made a massive contribution to the Liberals and the nation over her 25 years in parliament, and warned the byelection would be hard to win.

“The Farrer byelection is going to be very, very tough,” he said in Sydney on Friday.

“I came into this role with the Liberal Party in the worst circumstances it’s faced since 1944.”

Angus Taylor has pledged a new direction for the Liberals. Photo: AAP

In her resignation statement, Ley said she hoped her election would pave the way for future women in politics.

“I believe my election as the first woman to ever lead not just the federal Liberal Party, but any federal opposition, is a milestone for all women to be proud of.

“I hope I have paved the way for the next woman to be elected to, and succeed in, both these roles.”

The Speaker of the House of Representatives, the Hon Milton Dick MP has received a letter of resignation from the Hon Sussan Ley.

The Speaker is considering possible dates for the by-election for the electoral division of Farrer, NSW and will make an announcement in due course.

— Australian House of Representatives (@AboutTheHouse) February 27, 2026

Now Ley has resigned, Speaker Milton Dick will issue the writs for a byelection, officially setting a date for Farrer residents to choose her successor.

The Liberals, Nationals, One Nation and independent Michelle Milthorpe are all expected to run.

Fellow independents David Pocock and Helen Haines will publicly endorse Milthorpe on Friday, effectively kicking off the campaign for Farrer even though a byelection date is yet to be set.

Milthorpe has previously been in the public eye as an advocate for victims of child sexual assault, after her two daughters were abused by a family friend.

She ran against Ley in the 2025 federal election, losing 56.2 to 43.8 per cent after preferences.

After being deposed as opposition leader, Ley said she would spend the following weeks thanking her constituents before tendering her resignation.

But one senior Liberal source said Ley had not been heard from since the day of the leadership spill and had not reached out to any of the local party membership.

Ley’s office did not respond to a request for comment.

The Liberals, Nationals and One Nation are all yet to announce candidates for the upcoming vote.

State Liberal MP for Albury Justin Clancy had been considering a run but ruled himself out on Friday morning, citing family commitments.

Party insiders feared losing Farrer and the state seat of Albury if Clancy wasn’t successful in the by-election.

One Nation plans to reveal its final three or four nominations next week, with a pre-selection event scheduled for March 7 to choose its official candidate.

Helen Dalton, an independent NSW MP whose electorate of Murray overlaps with Farrer, has left the door open to running for the anti-immigration party.

Local Nationals party members will also vote on their candidate in the coming weeks.

–AAP