The senator is threatening to separate from the party follow weeks of disagreements and a decision is expected some time this week.
Greens senator Scott Ludlam believes less of legislation from the Abbott government will be passed if Lambie split from the Palmer United Party.
“It is up to Mr Abbott, his budget is a complete shambles. He has failed to get up the larger part of his agenda this year,” Mr Ludlam said. And I’m expecting the situation with the disintegration of the Palmer United Party will probably make life harder for him.”
Liberal Democratic Party senator David Leyonhjelm said the senator’s defection could spell interesting times for the government’s legislative agenda.
Previously, the government had focused on securing support from Mr Palmer’s block of four votes.
“If there’s four groups of two and no group of three … it will be more interesting for the government,” he told ABC TV on Sunday.
“But I guess it also means they won’t be beholden to Clive.”
The government will have to work much harder to secure votes from four loose subgroups – Senators Lambie and Ricky Muir; PUP Senators, Senators John Madigan and Nick Xenophon and Senators Leyonhjelm and Bob Day.
Last week, in a surprise twist Senators Muir and Lambie sided with Labor to reverse government changes to Labor’s financial advice laws, despite previously voting twice with PUP to keep the changes.
“Jacqui and Ricky are determined to be independent … determined to go their own way,” Senator Leyonhjelm said.
“They are quite convinced they’ve been snowed in the past.”
Family First Senator Bob Day says he has been encouraging Senator Lambie to sort out her differences with her colleagues.
“Senator (Glenn) Lazarus and Dio Wang are both very, very good people,” he told Network Ten.
Senator Day quoted Chinese President Xi Jinping to illustrate the importance of team work and co-operation to achieve goals in the Senate.
“If you want to walk fast, walk alone, if you want to walk far, walk with a friend,” he said.
Senator Day said it was too early to tell if Mr Palmer’s power was completely diminished.
He left the door open on Senator Lambie joining a loose alliance with himself and Liberal Democratic Party senator David Leyonhjelm.
Three senators teaming up with Labor and the Greens is the magic number needed to block legislation.
He said South Australia and Tasmania have a lot in common and he often speaks to Senator Lambie about their respective states’ financial strife.