The coalition agreement between the Nationals and Liberals at the heart of NSW government looked on the edge of collapse on Thursday night after Premier Gladys Berejiklian threatened to kick every Nationals minister from her Cabinet.

Asked if he had lost sleep over the Thursday night standoff and potential loss of his job as Minister for Better Regulation and Innovation Mr Anderson said "as soon as we're done here I'll go and have a nap".

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The Cabinet Minister fronted the media on Friday after party leader John Barilaro announced the Nationals would back down from a threat to abstain on all government legislation.

Without change to a new planning law designed to protect koalas, Nationals Party leader and Deputy Premier John Barilaro threatened on Thursday to essentially take his party to the crossbench.

Nationals would also not attend joint parliamentary meetings - but Nationals ministers would keep their jobs and remain in Cabinet, he said.

On Thursday afternoon Premier Gladys Berejiklian called his bluff, and demanded a back down by a 9am deadline on Friday morning.

Asked if they had suffered a humiliating defeat Mr Anderson said the Nationals were "fighting for regional NSW".

Mr Barilaro won no announced concessions from the Premier through his party's hours-long standoff. A statement issued on Friday under both their names simply declared "the matter will be dealt with at an upcoming Cabinet meeting" - the Premier's position all along.

Asked why they threatened to walk away from the joint party room Mr Anderson said the Nationals needed to "draw a line in the sand" to cut through the "white noise" of politics.

"I think we are fighting very well. Sometimes you've got to draw a line in the sand. What we don't want to do is to be dictated from the 23rd floor of Macquarie Street. We know how best to manage our country," he said.

"What you've got to do is stay at the negotiating table. Once you step away from the table you take yourself out of the discussion. You take yourself out of the opportunity to be able to achieve an outcome."

Mr Anderson said the Koala SEPP was "very important for our people in the Tamworth electorate".

"As I've just highlighted, Gunnedah is the koala capital of the world.

"So when you're thinking about what we're doing for the Koala population I think it's a little disingenuous to think that we don't care for koalas and pushing them aside and putting farmers first. There is a balance. Farmers and our agriculture and flora and fauna have worked together for the sustainability of this great nation for hundreds of years. In fact will continue to do so."

Federal Member for New England Barnaby Joyce cautioned the Premier about antagonising her coalition partner over the issue, which he said was about "property rights" in the face of "socialism".

"Premier Berejiklian, a regulation is not as important as your relationship with the people without which you would not be Premier Gladys Berejiklian, you would just be Gladys Berejiklian," he said.

Mr Anderson did not rule out a further effort to create a legislative logjam in an attempt to get their way.

"I don't back away from any of the decisions that we have to put forward to get the best deal for our communities.

"A lot of the battles that we have are behind closed doors."

He said he would continue to back John Barilaro as Nationals leader and Deputy Premier.

The Nationals vowed on Thursday to introduce a repeal bill of the new Koala State Environmental Planning Policy when parliament returns next Tuesday.