The Northern Territory senator was axed from the frontbench by Opposition Leader Sussan Ley on Wednesday after a week of controversy around her comments on Indian migrants.
The frontbench sacking came hours after the senator refused to endorse Ms Ley's leadership at a press conference in Perth, where she also declined to apologise for her migration remarks.
"Although I will be returning to the backbench, I will continue to speak up on issues which are in the national interest and that are important to millions of Australians," Senator Nampijinpa Price said in a statement.
"My concern - as it is for millions of Australians - is Labor's mass migration agenda and its ramifications.
"My concern is not migration itself - it's the magnitude of migration."
Ms Ley said the senator's refusal to endorse her as leader had made her position in the shadow ministry untenable.
Opposition finance spokesman James Paterson said the axing was disappointing, but was confident his Senate colleague would return to a prominent position within the Liberal party.
"It was self-evidently not an edifying week for the Liberal Party and we are concerned about the way in which Indian Australians heard that discussion and felt about that," he told Sky News on Thursday.
"Political careers are not linear any more, they have fits and starts, forward steps and back steps, and I'm confident that Jacinta will be back in a prominent role in the front bench."
Deputy opposition leader Ted O'Brien said while Senator Nampijinpa Price had the freedom to speak out on issues, her comments had to be dealt with and Ms Ley made the right decision.
"Jacinta expressed herself authentically with deep regret for what her words had meant to a lot of Indian Australians," he told ABC TV.
"Of course, as time went on, it was very clear that stronger words were called for.
"Ultimately, a decision has been made by our leader, Susan Ley, it is the right decision.
"Words can sometimes be positive and help someone out, or words can hurt, and I think we all have to be mindful, no matter what we do in life, to try to choose our words as best as we can."
Ms Ley said she would still warmly welcome the presence of Senator Nampijinpa Price, who held the shadow defence industry and personnel role, in the party.
"Her membership of the Liberal Party is something we continue to welcome and support," she said.
The NT senator had defected from the Nationals to sit in the Liberal party room, shortly after the coalition's election defeat in May.
Senior Nationals senator Bridget McKenzie said the onus should have been on Senator Nampijinpa Price to step aside if she didn't have confidence in her leader.
"Australians would all agree that this went on for too long," she told Nine's Today show.
"Senator Nampijinpa Price obviously united the country against Labor's divisive voice referendum a couple of years ago.
"But the reality is in our system of government - whether you're in the Labor Party, the Liberal Party or the National Party - you've got to have confidence in your leader and if you don't, the responsibility and onus is on you to resign."
Senator McKenzie said the coalition leadership team of Ms Ley and Nationals Leader David Littleproud was "strong".
17°C