Peter Dutton has promised the Liberal faithful the party will return to good times. (Mick Tsikas/AAP PHOTOS)

By Maeve Bannister in Canberra

OPPOSITION Leader Peter Dutton has issued a rallying cry to Liberal Party faithful as allegations of misconduct against one of their own rock federal parliament.

Liberals from across the country gathered in Canberra for the annual federal council meeting on Saturday, the first since the fall of the coalition government at the 2022 federal election.

The troubles worsened when they lost the blue-ribbon seat of Aston to Labor at a by-election in April.

In a speech to state leaders, shadow ministers and senior office bearers, Mr Dutton said while the party may appear to be in dark times, there was reason to be optimistic.

“In the cycle of politics, as we all know, parties will be down but they’re never out,” he said.

“We’ve been here before and we came back and I promise you, we will come back again.”

The council meeting had hoped to focus on the Albanese government’s handling of national security, housing affordability and the cost-of-living crisis.

But it was overshadowed by multiple allegations of misconduct made against Liberal senator David Van.

Independent senator Lidia Thorpe and former Liberal senator Amanda Stoker both alleged Senator Van had touched them inappropriately in previous years.

Senator Van denied the allegations and said he would co-operate with any investigation process.

But Mr Dutton expelled the Victorian senator from the federal party room and later called for him to resign from parliament.

He also revealed a third allegation against Senator Van was under investigation but declined to provide further details.

Mr Dutton told the council the Liberal Party was doing the leg work to offer Australians a clear choice at the next election.

He said a threat to liberalism in Australia was the lack of housing affordability.

“If young people can’t accumulate capital, they’re unlikely to have much fondness for capitalism,” he said.

“By extension, if people can’t realise their aspiration to buy and own their own home, they’re unlikely to have much faith in liberalism and so they look elsewhere.”

Mr Dutton spruiked a proposal to allow first home buyers to use their superannuation for a deposit, a policy announced by former prime minister Scott Morrison before the last election.

He said it was an example of a policy which would win over younger voters.

“Many aspiring young Australian home owners will cast their vote at the next federal election,” he said.

“As the pencil in their hand hovers over a coalition candidate, we want the sound of jingling house keys to resonate in their minds.”

The next challenge for the Liberals will come on July 15, at a by-election for the Queensland seat of Fadden to replace outgoing MP Stuart Robert.

Gold Coast councillor Cameron Caldwell hopes to retain the seat for the party.

Queensland opposition leader David Crisafulli said the upcoming by-election would show “the value of good leadership” and selecting the right candidate.

“We’ve pre-selected someone who knows that patch, he lives it, he breathes it,” he said.

“The Gold Coast community will have the opportunity to send a message to (Prime Minister Anthony) Albanese and I have every confidence they are going to do it in style.”