The senator said she will become an independent after Lambie told her she should leave the party.
The nation’s only Liberal government faces the prospect of negotiations with minor parties and independents to form government.
Tasmanian Liberals are chasing a record fourth successive term,while Labor is aiming to end a decade in opposition.
Tony Burke accused the Coalition of holding up pay rises after crossbenchers voted with the opposition to delay a Senate report into Labor’s IR bill.
A popular budget measure to double the length of common medicine scripts is facing an unexpected hurdle,with crossbench senators joining the Coalition in pushing the government to go back to the negotiating table with pharmacists.
The $368 billion nuclear submarine deal has prompted fresh calls for tax changes,including the stage three cuts,to pay for the boats.