It is a historic day for Australia as Julia Gillard became the first female Prime Minister after a bloodless parliamentary coup in which Kevin Rudd was ousted by his own party.
Moments before being sworn in as Prime Minister, Gillard addressed the nation and also took responsibility for the Rudd government's failures to deliver on its promises.
Gillard said she will soon call for general elections.
The new Australian Prime Minister said it is time for Australia to accept a new future.
The ousted Kevin Rudd was very emotional as he addressed a press conference for the last time as Prime Minister.
Rudd said he is now ready to contest the next elections.
Just a year ago, Rudd rivaled Bob Hawke as Australia's most popular leader.
But he now joins Hawke as the only other Labor prime minister dumped by his party.
Rudd had decided to fight to the death after refusing to step aside last night for Gillard.
Gillard, however, was believed to have the numbers before going into this morning's ballot, which was not held.
She also had the backing of the powerful Australian Workers Union.
A series of policy failures, poor polls and the decision to go to war with the mining industry have all contributed to Rudd's plunging fortunes among his colleagues.
Julia Gillard first female AUS PM
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