Liberals urged to unite nation after pounding at polls

Senior Liberals want the party to be seen as unifying the nation, not dividing it, as it recovers from a series of electoral losses.

The Liberal vote at the 2022 federal election was the lowest in the party's history and it is now in opposition in parliaments in every mainland state.

The opposition party also overturned a century of political history by losing the Melbourne seat of Aston to the government at a by-election.

Liberal senator Simon Birmingham said he wanted his party to return to its values while also reflecting modern Australia to ensure it sends a compelling message to voters.

"Times have changed and the construct and demographics of society have changed," he told ABC Radio National on Wednesday.

"We should still be a party of small business but we should use that as a tool to embrace migrant and multicultural communities who are so entrepreneurial in their nature."

Senator Birmingham said voter feedback suggested some viewed the party as intolerant, divisive and at times nasty.

"The equality of opportunity stands at the core of the Liberal belief in individual rights and individual opportunities," he said.

Senator Birmingham said debates on fringe issues such as transgender rights were counterproductive and acknowledged women did not consider the party as representing their interests.

Deputy leader Sussan Ley said the Aston loss was disappointing but MPs would learn from it and would work hard to gain back the trust of voters.

"We will redouble our efforts, we will refocus and we will approach the Australian people with determination to earn their trust and their faith in us when it comes to the next election," she said.

Liberal MP Bridget Archer said she feared the party's decision on Wednesday to oppose the proposed Indigenous voice referendum would associate it with "views ... that are divisive and that are racist".

Mr Dutton told reporters after a party room meeting he did not think the stance would further damage the Liberals.

"What we are proposing as Liberal Party is an opportunity to unite our country, not disrupt the system of government as we know it," he said.

"And to be able to put ourselves in a position where we can improve the outcomes for Indigenous Australians on the ground."

Greens Leader Adam Bandt blasted the Liberal Party over its position.

"The Liberals are a small, racist rump sliding into irrelevance," he said.

"The rest of the country is starting to reckon with its past as we march towards a treaty, but Peter Dutton is trying to ignite a culture war."