Fatima Payman will reportedly leave the Labor Party but remain in the Senate as an independent for the remainder of her term until mid-2028.
The first-term senator is expected to make his announcement Thursday afternoon, ABC reported.
Prime Minister Anthony Albanese suspended her indefinitely from the federal caucus last weekend after she broke party rules and switched sides to support a Greens motion on a Palestinian state.
While she was initially suspended for just one session, Mr Albanese increased the punishment after she said on national television that she would continue to switch sides on the issue.
At his meeting on Tuesday, he received the support of the entire parliamentary group.
The 29-year-old was elected to a rare third seat in the Western Australian Senate for the Labor Party in 2022.
As The West revealed this week, her departure from the party means she will have to pay back the campaign costs incurred by the Labour Party to get her elected.
An unexpected twist in the story: Senator Payman was a member of the WA Labor Committee’s administrative committee, which will decide on the amount of this bill, until she was suspended by the party on Tuesday.
Senator Payman has increasingly diverged from the Government’s position on Palestine and has embarrassed many parliamentary colleagues by the timing of her interventions.
A day after the budget was passed in May, she delivered a speech to the media, originally scheduled to be delivered at a rally outside Parliament House, in which she accused Israel of genocide, said Australia was not doing enough and used the controversial phrase “from the river to the sea, Palestine will be free”, which Albanese had previously condemned as violent language.
The tensions of the past two weeks have overshadowed the government’s sales pitch for its July 1 tax cuts, electricity bill rebates and wage increases for the lowest-paid workers.
She has struggled intensely personally with the government’s stance on the Gaza war and has been publicly pressured by many activists to speak out.
The government has taken a more pro-Palestinian stance in the nine months since the October 7 attacks, but some in its ranks – not just Senator Payamn – believe it has been too slow.
But her colleagues are angry because Senator Payman did not use any of the internal processes – formal or informal – to raise her concerns before going public or switching sides.
On Monday she said she had been “banished” from the party and felt her Labour colleagues were trying to intimidate her into leaving Parliament.