Turnbull's secret $4 billion deal to win over The Nationals

The Nationals once expressed grave reservations about working with Prime Minister Malcolm Turnbull but a $4 billion coalition deal now seems to have smoothed those uncertainties.

For the first time, The Nationals have negotiated a list of agreed coalition positions on policies close to their heart.

As a result, the junior party appears relatively sanguine about Malcolm Turnbull's elevation to prime minister.

The Nationals have negotiated a new coalition deal with Malcolm Turnbull, winning assurances on a number of policy fronts. Photo: AAP

Included in the deal is $1.5 billion in budget allowances and a $2.5 billion water portfolio transferred to Nationals deputy leader Barnaby Joyce, according to The Daily Telegraph.

An extra $600 million package centred around providing up to $1000 to families with stay-at-home mothers is also reportedly part of the deal.

"I am comforted by (his) assurances," Nationals leader Warren Truss told reporters in Canberra on Tuesday.

Mr Turnbull, as opposition leader between 2008 and 2009, favoured an emissions trading scheme and a floating carbon price.

But he has now undertaken not to depart from existing coalition policies on climate change action, the carbon tax and emissions reduction targets.

The switch to Mr Turnbull appears to have translated into an immediate electoral bounce for the Liberals ahead of Saturday’s by-election in the seat of Canning. Photo: AAP

He will also stand by the plan to canvass same-sex marriage at a national plebiscite.

There will be proper cabinet consideration of amendments to the Australian Competition and Consumer Act to prevent abuses of market power.

The big victory appears to be an agreement to transfer responsibility for water policy from the environment department and the Murray-Darling Basin Authority to the agriculture portfolio of Nationals deputy leader Barnaby Joyce.

Malcolm Turnbull and Nationals leader Warren Truss have settled on a new coalition agreement. Photo: AAP

Mr Truss said the environment department would retain water issues associated with environmental legislation.

"This change will revert to the situation that has existed for many, many decades," he said.

Mr Joyce said the economic and social basis of many regional towns was premised on access to water.

"Without water they do not have an economy," he told reporters.

"There is not much point having an environmental outcome if there is no-one there to enjoy it."

Malcolm Turnbull was sworn in as Prime Minister of Australia on Tuesday. Photo: AAP

Mr Truss said while the new coalition agreement followed extensive negotiations The Nationals hadn't gained everything they wanted.

"That happens in tough negotiations," he said.

The family of Prime Minister Malcolm Turnbull was on hand to witness him being sworn in on Tuesday. Photo: AAP

KEY POINTS OF THE AGREEMENT

• No change to existing climate policy

• Coalition to proceed with plebiscite on same-sex marriage

• Responsibility for water moves to the agriculture portfolio

• Ongoing funding for communications technology including mobile phones and TV blackspots

• New jobs program to address high regional unemployment areas

• Cabinet consideration of measures to prevent abuse of market power

• Support for infrastructure investment

• Addressing financial barriers to higher education for rural students

• Extra support for stay-at-home parents with a child under one.

Turnbull ascension brings bounce in polls

The switch to Mr Turnbull appears to have translated into an immediate electoral bounce for the Liberals ahead of Saturday’s by-election in the seat of Canning.

A ReachTEL poll for Seven West Media of 1129 Canning residents on Monday night, when the leadership spill was in motion, suggests Mr Turnbull’s ascent will aid Liberal candidate Andrew Hastie.

A 52-48 two-party-preferred advantage to Mr Hastie over Labor’s Matt Keogh increased to 57-43 once respondents were asked to consider a scenario where Mr Turnbull became PM.

A Morgan Poll conducted Tuesday found Mr Turnbull enjoyed a massive advantage over Bill Shorten as preferred prime minister, 70 per cent compared with 24 per cent for the Labor leadcaner.

The day after being cut down by his Liberal colleagues, Mr Abbott used his final press conference as Prime Minister to pledge not to destabilise his successor.

“There will be no wrecking, no undermining, and no sniping,” Mr Abbott said.

“I have never leaked or backgrounded against anyone and I certainly won’t start now. Our country deserves better than that. I want our Government and our country to succeed. I always have and I always will.”

Mr Abbott said it had been a great honour to serve, saying he was proud of his Government’s achievements, albeit it had not been perfect, being of “men and women, not a government of gods walking upon the Earth”.

Mr Turnbull used his first question time as PM to strike an optimistic tone.

“We know that this coming election next year will be won by the party that is able to embrace the future, able to envision and explain the future,” he said.

“The future is one of great opportunities and that requires confidence and leadership and it will be lost if we embrace the politics of fear and scaremongering, of which the Leader of the Opposition is so fond.”

Mr Shorten last night wrote to Mr Turnbull, suggesting they meet to resolve concerns about job safeguards in the China-Australia Free Trade Agreement.

Mr Turnbull moved quickly to assert control over the Government, appointing former prime minister John Howard’s trusted adviser Tony Nutt to oversee the transition and renegotiating a new coalition agreement with the Nationals. As well as giving the Nationals responsibility for water policy, Mr Turnbull has agreed to increase family benefits for stay-at-home mums and improve mobile phone and TV blackspot funding.

The day after being cut down by his Liberal colleagues, Mr Abbott used his final press conference as Prime Minister to pledge not to destabilise his successor. Photo: Getty

The agreement formalises continuing the existing climate policy and the plan to settle the gay marriage question by plebiscite in the next term of government.

Mr Turnbull promised he would run a collegial and open office.