Outspoken Palmer United Party senator Jacqui Lambie has been demoted by her party for failing to attend party meetings.

The move comes after weeks of internal turmoil in the party and a war of words between the Tasmanian senator and party leader Clive Palmer, with Senator Lambie complaining Mr Palmer was not doing enough on issues such as a better pay deal for Defence personnel.

Mr Palmer issued a statement on Wednesday confirming that the parliamentary party had voted to remove Senator Lambie from her party positions of deputy leader of the Senate and deputy whip, effective immediately.

Mr Palmer said Senator Lambie had also been suspended from attending any parliamentary meetings of the party.

"Jacqui Lambie has failed to attend the last three parliamentary party meetings," he said.

"As a consequence, the party has removed her from her position as deputy leader and deputy whip and suspended her rights to attend future party meetings.

"This will be enforced until such time she gives an undertaking to cease personal attacks on party members and to follow major decisions of the party room.

"At no time has Jacqui Lambie ever brought a resolution to the party meeting in relation to Tasmania or veterans."

The demotion also follows Senator Lambie's decision on Tuesday night to break with her fellow PUP senators to join Labor, Greens and some other crossbench senators to sign on to a motion to disallow regulations introduced by the Abbott government to unwind the former Labor government's financial advice reforms.

The Palmer United Party supports the Coalition's changes.

Australian Motoring Enthusiast Party senator Ricky Muir, who is part of an alliance with PUP, has also signed on to the motion to disallow the changes.

Senator Lambie has dropped the party name and logo from her website, and there is speculation that she could quit the party as early as Wednesday.

The party sent an email to members on Tuesday night highlighting that the 1501 primary votes Senator Lambie received in last year's election amounted to just 6.7 per cent of the party's total primary vote in Tasmania of 22,184. Senator Lambie's personal vote amounted to just 0.45 per cent of the total Senate primary vote in Tasmania, the message said.

I've found my way now: Lambie

Senator Lambie appeared before the media with other crossbench senators on Wednesday morning to announce her support for the disallowance motion, but did not answer questions on her future with the party.

"I have to do what's right for my Tasmanians and I didn't believe we were doing the right thing [by supporting the government's financial advice changes]," she said.

"I have to do what's right by my conscience and I believe we've allowed it to be watered down - and that's the issue I have with it. I've had that issue all along with it.

"The first couple of weeks of being up in the Senate were very difficult, we were all trying to find our way - well , I've found my way now.

"You know what, sometimes when you make a wrong you have to go back in there and make it right, and that's exactly what i'm doing now."

Asked on Fairfax Radio why Senator Lambie had not been expelled from the party, Mr Palmer replied: "Because we don't want to make her life more difficult than it already is.

"When people are going through difficult times in their workplace, you should stand by them," he said.

"On everything, Jacqui's supported the party 100 per cent in the party room and not followed through on it, like she hasn't this morning, which is a matter of concern.

"It's very interesting that she hasn't resigned from our party. She knows in her heart that she fully believes in everything we stand for, that's why she hasn't resigned, and we hope that she can reconcile all those things in coming days."

Mr Palmer also attacked Senator Muir, who has a working alliance with PUP, for voting against the government's changes to financial advice rules after it had altered them on his request.

Mr Palmer rejected the suggestion his party was unravelling.

"We've just got one member who's having a few problems. And we've got thousands of members joining every day," he said.

Talk to us, Lazarus tells Lambie

Felllow PUP senator Glenn Lazarus said on Wednesday morning he hoped she would remain with the party and called on her to talk with her "bewildered" colleagues.

Senator Lazarus said Senator Lambie had refused repeated invitations to attend party meetings and admitted the spat wasn't a good look for the PUP.

"It's obviously disruptive but we can't do anything unless Jacqui talks to us, and we can sort it out," he told reporters in Canberra.

"I love Jacqui, I think we get on really well, and the party has achieved quite a number of things throughout the year. I'm just a bit bewildered about the fact that she won't talk to us."

with AAP

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