Victorian Liberals Loan $1.55M to Save Pesutto from Bankruptcy

The Victorian Liberal Party has agreed to loan former leader John Pesutto $1.55 million to pay legal costs owed to fellow Liberal MP Moira Deeming, avoiding his bankruptcy and a by-election in his marginal seat of Hawthorn. Pesutto was ordered by the Federal Court to pay $2.3 million after being found to have defamed Deeming by implying she was associated with neo-Nazis. The party's administrative committee decided to pay Deeming directly, with Pesutto required to repay the loan at a market-based interest rate. Victorian Liberal president Philip Davis stated that settling the matter allows the party to focus on holding the government to account and campaigning for the 2026 election. The decision ended a prolonged internal conflict that had cost Pesutto his leadership and strained the party’s leadership under Brad Battin. Despite Deeming's skepticism about resolving infighting, the loan deal is seen as a strategic move to stabilize the party and avoid further political fallout.