A Liberal Party reform plan proposed by Malcolm Turnbull and Mike Baird has won support at the party's NSW conference, beating out a rival push by Tony Abbott.
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The Turnbull-Baird compromise plan passed with the unanimous support of delegates at the meeting on Saturday morning. The motion's success means party reform will be debated at a special convention in the first half of next year.
The Turnbull-Baird plan was put forward in a bid to defuse a battle between party conservatives and moderates, in what is seen by many as a proxy battle between the Turnbull and Abbott forces.
Mr Abbott's plan was aimed at giving party members more power over preselections - "one member, one vote". Mr Turnbull supports that idea in principle but believes broader reform should be tackled at the special meeting.
Many saw Abbott's push as an attempt to destabilise Mr Turnbull's leadership.
The showdown came amid high tensions between Mr Turnbull and Mr Abbott, whose rivalry spilled out into the open last week over a disagreement over gun control.
Mr Abbott emerged from the conference room saying he was pleased because "reform is unstoppable" but added "we can't have true reform without one member, one vote".
"We must change and, thanks to today, we will change," the former PM said.
Mr Abbott has previously told Fairfax Media it would be a "very bad look" for the party to vote against his proposal.
Several people spoke in favour of the Abbott plan, including rising conservative star Angus Taylor. But Mr Abbott's "Warringah motion" was defeated by 246 to 174 votes.
Mr Baird and the federal Treasurer, Scott Morrison, spoke in favour of the compromise plan.
"I am determined as you are to modernise the Liberal Party," Mr Turnbull said in a speech. "Once people join our party it has to be worth their while, otherwise they will very quickly find something else to do with their time."
Backbench MP Trent Zimmerman spoke against the Abbott plan and raised the issue of plebiscites opening the door to ethnic branch stacking, but was pulled up by others in the room who found the suggestion offensive.
It was argued with proper measures in place such as two-year party membership branch stacking could be avoided.