The political future of Labor's Fatima Payman hangs in the balance as reports have emerged that the suspended senator has been talking to a well-known strategist to independents and may be aligning herself with the Muslim group organising candidates to oppose Labor at the next election.

The internal crisis has distracted from the government's agenda in the important final sitting week before the long winter break.

7.30's Sarah Ferguson interviews Prime Minister Anthony Albanese.

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