Liberals drop LDP court action

The Liberal party has dropped its court action to stop the Liberal Democrats from using the term "LDP" on ballot papers.

The Liberals began the Administrative Appeals Tribunal action after David Leyonhjelm won a Senate seat in NSW for the Liberal Democrats in 2013.

Former Liberals federal director Brian Loughnane argued NSW voters had confused the two parties, which was part of the reason for Senator Leyonhjelm's win.

The Liberals, now headed by new director Tony Nutt, have dropped the action which also involved the Australian Electoral Commission.

It's expected Senate ballot papers for the 2016 election will allow parties to use colour logos, which will allow for less confusion.

The AAT hearing had been set down for next week.

A previous AAT challenge in 2001 against the party Liberals for Forests using the term "Liberals" was lost.