SYDNEY – Australia’s leading opposition Liberal Party may have to work with a far-right, anti-Islamic party that defeated it in a “bloodbath” by-election, a senior government minister said on May 10.

One Nation, whose leader Pauline Hanson wants to slash immigration and has repeatedly made anti-Islamic remarks, won its first Lower House federal election battle on May 9.

“We are coming after those other seats,” Ms Hanson vowed after the win. “You are not going to be the forgotten people any more.”

One Nation’s David Farley took 39 per cent of the vote in the rural New South Wales seat of Farrer, snatching the seat at a time of rising prices, unaffordable housing and concern over issues like immigration.

His nearest rival, an independent candidate, secured 28 per cent of the vote while the conservative Liberal Party’s contender got 12 per cent, and the rural-based National Party 10 per cent, official results showed.

“This wasn’t a by-election – it was a bloodbath for the coalition,” treasurer Jim Chalmers told Sky News Australia, referring to a Liberal-National party alliance that has governed Australia for much of the post-war period.

“What it shows is that the coalition can’t beat One Nation. They’ll have to join them. There’s no future coalition government, I think, without One Nation in it.”