The Turnbull government is defending an unprecedented preference deal that could see the Liberals put One Nation ahead of the Nationals in Western Australia, with a senior frontbencher saying Pauline Hanson's party is more "sophisticated" than it was in John Howard's day.
Arthur Sinodinos says One Nation has "evolved" in the 16 years since his former boss, John Howard, decreed that the Liberal Party always put One Nation last on their how-to-vote cards.
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Liberals to direct preferences to One Nation
Pauline Hanson's party is a 'different beast to what it was 20 years ago', says Federal Industry Minister Arthur Sinodinos. (Vision courtesy: ABC News 24)
"The One Nation of today is a very different beast to what it was 20 years ago," he told the ABC on Sunday.
"They're a lot more sophisticated. They've clearly resonated with a lot of people. Our job is to treat them as any other party.
"So when it comes to issues of preferencing and the like we have to make decisions - in this case it's a state decision, not a federal decision - based on the local circumstances," he said.
The alliance between the WA Liberals and Nationals is reportedly at breaking point as a result of the deal, which could keep the conservatives in power but also deliver One Nation the balance of power.
Under the terms of the deal detailed in the Sunday Times newspaper, the Liberals would preference One Nation above the Nationals in the upper house country regions in exchange for the far-right party's support in all lower house seats at the upcoming March 11 state election.
Prime Minister Malcolm Turnbull made it clear he would not stand in the way of such a preference deal during a speech to the National Press Club earlier this month, calling it a state matter.
His stance comes amid increasing concern in Coalition ranks that it's bleeding votes to the far-right minor parties.
The Liberal National Party in Queensland is also grappling with how to treat One Nation ahead of the state poll due there later this year, with the latest polls giving Ms Hanson's party almost one-quarter of the vote.
The Liberal Party's Victorian branch is also considering dumping its long-standing policy of putting One Nation last.
Labor has taken a different approach, with Bill Shorten instructing the federal ALP not to do any preference deals with One Nation.
Senator Sinodinos says the Coalition's job is to get voters back from One Nation in the years ahead.
"There are a lot of people out there who are just mad as hell and it's going to take some time for policies to seep through to them and convince them that the way of One Nation is not the way to go."
He pointed out:Â "The bloke who came up with their 2 per cent tax policy years ago has just gone bankrupt."
​The WA Liberals want to avoid what occurred in 2001 when Richard Court lost power after putting One Nation last. But the Nationals are furious over the deal, which could cost them several seats.
Preferences are expected to play a major role in what is tipped to be a knife-edge election.