Peter Dutton has failed in his attempt to usurp Prime Minister Malcolm Turnbull; he has resigned from the cabinet and will move to the backbench.

Mr. Dutton reportedly spent much of the weekend discussing a spill, but apparently he wasn't clear on the numbers:  Turnbull survived with a 48-35 vote in the party room.  Dutton's exit from the cabinet leaves a big hole for Turnbull to fill in the reshuffle, and Treasurer Scott Morrison will fill-in as Home Affairs minister in the interim. 

Dutton refused to specifically rule out taking another run at Turnbull, still believing that the coalition will suffer great damage in the next election if led by Turnbull.

At lunchtime, PM Turnbull said his divided party needs to come together.  "We know that disunity undermines the ability of any government to get its job done, and unity is absolutely critical," he said.

But it's not just other coalition members coming after him.  Labor leader Bill Shorten immediately challenged Turnbull with a no confidence measure.

"The Prime Minister's weakness is infectious," Shorten said.  "You are as weak a Prime Minister we have seen since Billy McMahon."

"This house should vote for no confidence because the prime minister has no authority, no power, and no policies," the Labor leader told Parliament.  "I say to Australians were shocked by the turmoil in this government, it is not over until the member for Dickson (Mr. Dutton) has the scalp of the prime minister hanging from his belt," Mr Shorten said.

"You have no idea how the real people live.  You are hopelessly out of touch with their views and you lead a divided government”