The federal Member for Calare, Andrew Gee, is resigning from the National Party effective immediately over its opposition to the Indigenous Voice to Parliament.
The shadow Minister for Regional Education, Health and Development will now sit as an independent.
Mr Gee broke ranks last month when he criticised his party's position on the referendum, and has now gone one step further.
"I can’t reconcile the fact that every Australian will get a free vote on the vitally important issue of the Voice, yet National Party MPs are expected to fall into line behind a party position that I fundamentally disagree with, and vote accordingly in Parliament," he told the ABC.
Nationals leader David Littleproud last month said the party would not support a constitutionally enshrined Voice to Parliament because "we don't believe this will genuinely close the gap".
"While I respect the views of my colleagues, this just isn’t right," Mr Gee said.
Mr Gee said he was "once a true believer" in the National Party but that it was failing in its duty to represent regional Australians in several areas.
"The reality is that the party is getting smaller and our regions are getting bigger," he said.
"The Nationals Party when I grew up was a big, bold, vibrant party and as time has gone on, the membership just keeps getting smaller and smaller.
"People have become disillusioned with mainstream parties and I must confess I have become disillusioned too."
Nationals to find new candidate
David Littleproud said he was disappointed by Mr Gee's decision.
"Mr Gee had always been free to make his own decision and vote accordingly about the Voice to Parliament," Mr Littleproud said.
"The federal Nationals remain united in our decision to oppose the Voice to Parliament.
"[But] one of the great things about our party room is the ability to have different opinions and speak and vote freely on issues that matter to individual members, and nothing has changed."
He said Mr Gee's departure had been accepted and a new candidate would be found for the electorate.
Prime Minister Anthony Albanese described Mr Gee's decision to quit the National Party as an extraordinary political development.
"Andrew Gee has made a principled statement about his commitment to constitutional recognition for Aboriginal and Torres Strait Islander people," Mr Albanese said.
"I am pleased that Andrew Gee will be campaigning for a 'Yes' vote [for the Voice to Parliament].
"We will work with him as an independent as we work with other crossbenchers across the parliament."
Mr Albanese said the move would leave the Coalition one vote short in terms of its representation.
Other disagreements
Mr Gee has held the seat of Calare since 2016 and before that was the Member for Orange.
His electorate covers the recently flood-ravaged NSW Central West and he has lobbied for residents displaced from their homes to receive further assistance.
"I think I need the freedom to speak out on these issues," he said.
"That's fundamentally the role of an MP and when I believe that our communities are not receiving the support they need at the speed at which they need it, I have to speak out and I can do that most effectively free of the ties of a political party."
A support package was announced by the state and federal governments on Friday, five weeks after a catastrophic flash flood in the region.
Earlier this year, while Mr Gee was the Veterans' Affairs Minister, he threatened to resign from cabinet after failing to get $96 million to clear a backlog in unprocessed compensation claims.
The Deputy Prime Minister at the time, Barnaby Joyce, then included the money in the budget.
Mr Gee has vowed to see out his term in parliament until the next election.
The usually conservative electorate of Calare was held by Labor between 1983 and 1996, and by independent MP Peter Andren between 1996 and 2007, before it returned to being a safe National seat.
Mr Gee's resignation comes almost a fortnight after the former Shooters, Fishers and Farmers Member for Orange, Phil Donato, quit his party over the behaviour of its leader, Robert Borsak.
Mr Donato is now an independent in NSW parliament.