The Liberal Party has joined the Nationals in formally opposing the Voice to Parliament proposal, but will be supporting constitutional recognition for First Nations people.
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The Liberals will push for local and regional representatives to advocate for Indigenous people, but have resolved on a "resounding no to the Prime Minister's Canberra voice", Opposition Leader Peter Dutton said.
Mr Dutton announced that Liberal frontbench would oppose the Voice proposal following a party room meeting but the position is non-binding for backbench MPs.
Mr Dutton has stressed he will work with the Albanese Labor government in support of legislation to work out the final wording of the yes or no question that will be put to the people between October and December.
"We want to make sure that we can get the best possible outcomes for Indigenous Australians," Mr Dutton said.
"And we do that through recognising Indigenous Australians in the constitution by providing for their say, their voice, to be heard by government in a very clear way. But at a local level.
"Having a Canberra voice is not going to resolve the issues on the ground in Indigenous communities."
Outspoken Tasmanian Liberal backbencher Bridget Archer said she was disappointed but not surprised in the decision.
Asked if she would be actively campaigning for the referendum to succeed, Ms Archer said "absolutely".
Ms Archer abstained from voting against the constitutional alteration bill last month, and was seen later that day attending a Parliamentary Friends of the Voice barbeque at Parliament.
Deputy Liberal leader Sussan Ley said the Prime Minister had adopted an, "it's my way or the highway" approach.
But Ms Ley said the stance was not a "no" from the Liberal party.
"It's a day of many yeses. Yes to constitutional recognition of Indigenous Australians. Yes to local and regional voices. Yes to better outcomes for Indigenous Australians," she said.
"[The Prime Minister has attacked] the opposition for seeking the clarity that we want to see how arrangements would actually work. So, I stand here today disappointed with the Prime Minister."
Mr Dutton has repeatedly been asking for more details of the proposal, and more recently raised concerns that a constitutional change would allow the Voice to advise executive government on matters such as economic policy, which could lead to legal challenges.
"I don't believe this is in the country's best interest," he said.
"I have spent literally months, like many Australians, trying to understand what it is the Prime Minister is proposing. We can't get the basic detail out of him. And I think that is a deliberate strategy."
The Liberals have been accused of being out of touch with the public following its historic loss in the Aston byelection but Mr Dutton rejected the notion that opposition to the referendum could hurt the party electorally.
The Nationals formally stated their opposition to the Voice late last year. Nationals Leader David Littleproud welcomed their senior Coalition colleague's stance.
Minister for Indigenous Australians Linda Burney said the Opposition's stance was all about "Liberal party internals" and not about Aboriginal and Torres Strait Islander people.
"This is not about politicians. This is about closing the gap," she said.
"Our guiding principle in this debate has been the Uluru Statement from the Heart, the generous request from First Nation leaders to the Australian people to walk together to a better future."
In response to calls for local and regional representation, the minister said that regional voices have already been rolled out in South Australia and Victoria.
Ms Burney said the Prime Minister had met with the opposition leader seven times but not once had Mr Dutton offered up any changes to the wording.
The issue could have major implications for the leadership of Mr Dutton after the Liberal party room rejected an appeal from Mr Albanese for a bipartisan approach to the Voice.
Mr Albanese said the Liberal party's position was being about "politics".
He said the government had consulted widely and in good faith on the draft constitutional amendments and wording.
"And today what we saw was no progress at all, just frankly, a pretty inadequate statement about all the Canberra process," Mr Albanese said.
"It is really a lack of substance when you're just speaking about something as being all about Canberra. It's a pretty cheap shot really.
"It diminishes the extraordinary amount of work done, particularly by Aboriginal Torres Strait Islander people, but other people, in the process as well."