The pair will remain in the upper house as independents.
Latham tabled a letter under parliamentary privilege, sent to special minister of state John Graham, alleging the party had tried to funnel money away from the NSW Electoral Commission.
Speaking in parliament today, Latham said: “Following the recent Queensland One Nation takeover of the NSW branch, I cannot remain as a One Nation MP due to past attempts of defrauding NSW electoral funds and the appointment of a new state executive orchestrated to repeat these rorts.”
The NSW government has referred the allegations to the NSW Electoral Commission.
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One Nation have rejected the allegations, with state director Amit Batish saying they would welcome any independent investigation.
“We are a transparent and accountable political party. We have always worked co-operatively and constructively with the NSW Electoral Commission. This will continue to be the case.”
Hanson said One Nation needed change after a 14 per cent drop in the party’s vote in the March 2023 state election.