Dugald Saunders has announced his resignation as the leader of the New South Wales Nationals after serving for two and a half years. The member for Dubbo made the announcement in a media release, which has surprised many within the party.

In his statement, Saunders described the decision as difficult but necessary. "It's the right time for me to take a step back and focus more on my family and myself," he said. He also emphasized the importance of allowing a new leader to emerge ahead of the upcoming election. "I will continue to serve the people of the Dubbo electorate as their local member," he added.

Saunders expressed gratitude for the opportunity to lead the party during what he called a "challenging time in opposition." His leadership faced various hurdles, including recent discussions among state Nationals MPs who expressed support for their federal counterparts' decision to abandon the net zero emissions target by 2050. This stance has put them at odds with their state Liberal colleagues, who still back the target.

Despite speculation, sources within the Nationals suggest that the issue of net zero emissions was not the primary reason for Saunders' resignation. The party is set to meet in Sydney as parliament resumes, but it remains uncertain whether a new leader will be appointed in the immediate future.

Potential candidates to succeed Saunders include Cootamundra MP Steph Cooke, who served as a minister in the previous Coalition government, as well as Bathurst MP Paul Toole, a former Nationals leader, and Coffs Harbour MP Gurmesh Singh.

Saunders took over the leadership in 2023 after Paul Toole, who had led the party for over two years, faced scrutiny regarding his leadership. At that time, Saunders was elected as the new leader by a vote of 10 to 5. He thanked his family, staff, and party members for their support during his tenure.