Palmer United Party senator Jacqui Lambie has called on all non-government senators to join her to block all government legislation until it offers a better pay deal to Defence personnel.
Senator Lambie also hijacked debates on bills relating to social services and sports anti-doping to read emails she had received from Defence personnel, including one critical of her leader.
Speaking in Federal Parliament on Monday, Senator Lambie attacked the government's below-inflation 1.5 per cent pay offer to the 57,000 serving soldiers, sailors and air force personnel as "unfair, unjust and... an appalling insult."
Addressing government senators, she said: "How you people over there can do that to these men and women who put their lives on the line is beyond me.
"Do you have any idea the consequences it's going to have on our national security and the morale of these men and women?"
Senator Lambie later read a number of emails from supporters, including one that called Palmer United founder and leader Clive Palmer a "whack job".
"I think you will face a backlash from your party but let's face it, it won't be a party for long and Clive is a whack job. So go for it alone, go independent – you will achieve so much more," one of the messages said.
Greens Senator Richard di Natale raised a point of order on the relevance of Senator Lambie's contribution, and the acting deputy Senate President, Cory Bernardi, repeatedly asked Senator Lambie to return to the legislation being debated.
Earlier, Senator Lambie voted with the Greens to oppose the social services bill despite her fellow PUP senators abstaining, while the anti-doping bill passed without a division.
Senator Lambie previously broke ranks with her fellow PUP senators to vow that she would personally vote against all government bills until Defence personnel were offered a better deal, and she caused friction with her colleagues by calling on veterans to turn their back on government representatives at Remembrance Day ceremonies last week.
Crossbench senators David Leyonhjelm and Bob Day said they will approach Senator Lambie to propose forming a new voting bloc in the Senate, a move spurred by Senator Lambie's public and heated clashes with Mr Palmer.
Senator Lambie fanned speculation on Sunday by issuing a statement confirming a series of meetings with other members and Senators. Mr Palmer told reporters on Sunday he did not believe Senator Lambie would join a new alliance.
Speaking in the upper house on Monday, Senator Lambie said the government would have no option but to relent if Labor, Greens and crossbench senators brought the governments legislative agenda to a halt.
"I have no doubt that if the non-government members of this chamber show courage, like our Defence force personnel, and unite and rally around this unique matter and vote against the government's legislation program and turn every vote in this chamber into a referendum on the Abbott government's appalling pay offer… then the Abbott government would be forced to bow down before the will of the Australian people and immediately renegotiate a fairer, and just pay deal for the men and women of our army, navy and our RAAF."
