The Coalition faces a setback after senior Liberal frontbencher Jonno Duniam announced he will retire from federal politics at the end of the year. 

The Shadow Minister for Home Affairs and Immigration confirmed on Sunday that he will not contest the next federal election, describing the decision as 'extremely difficult'.

Duniam, who has represented Tasmania in the Senate since 2016, said he considered the move due to the personal cost of his long political career.

'This was an extremely difficult decision to make - albeit that it is one I have been considering for quite some time,' he said.

'I have spent the past 25 years in politics, the last 10 of those as a Senator for Tasmania - and I have given everything to these responsibilities, often at the expense of family.

'It is time I reversed my priorities and I can't do that if I am to stay in politics.'

He said he informed Opposition Leader Angus Taylor ahead of the announcement and will remain in the role temporarily to finalise key policy work. 

'I discussed my decision with Angus some time ago, and he has asked me to continue for a short period of time to complete work on our Immigration policies,' he said.

With his Senate term not due to expire until 2028, Duniam's departure will trigger a casual vacancy, with the Liberal Party set to appoint a replacement.

He signalled the need for renewal within the party, saying it was time for a new generation to step forward.

'Now is the right time for my party to choose new Senate team members who will carry forward the fight for Tasmania and for the values in which the Liberal Party believes,' he said.

Duniam noted his departure comes at a challenging time for the Coalition, as the Federal Party struggles to capture support while One Nation surges in opinion polls. 

'Obviously, I acknowledge that I am leaving at a difficult time for the Federal Coalition,' he said.

'But I am confident that my friends across both the Liberal Party and the National Party are firmly on the right path.

'No two people in the Coalition are more equipped to lead us [and Australia] back to success than Angus Taylor and Matt Canavan; they are both outstanding leaders and have a love for our country that is unrivalled.'

A Newspoll released last week showed One Nation on 31 per cent of the primary vote, lifting four points since the previous poll taken after the Federal Budget. 

Labor sits on 30 per cent, down one point, while the Coalition has fallen two points to 18 per cent. 

The Greens are at 11 per cent, down one point, and support for all other parties remains unchanged at 10 per cent.

Following Duniam's announcement, Home Affairs Minister Tony Burke said the Liberal Party will lose one of its standout performers. 

'The Liberal Party will lose one of their best and brightest when he leaves parliament,' he told Sky News on Sunday.

'He'll say some pretty harsh things as you'd expect a shadow minister to say, but the reality is whenever there's been something squarely in the national interest, I've never seen him be anything other than professional.'