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Gillard to take Labor to next election

Swan elected deputy unopposed

Labor is now on election footing after Julia Gillard was elected unopposed in the party room to become Australia's first female prime minister.

Treasurer Wayne Swan was also elected unopposed as deputy prime minister.

After 24 hours of drama for the government, Ms Gillard took over the top job without a ballot when Kevin Rudd stepped aside from the leadership.

The writing was on the wall for Mr Rudd after the leadership spill began in earnest on Wednesday evening - just after midnight there were reports that Ms Gillard and Mr Swan already had the numbers sewn up.

The Labor caucus met just after 9am and about half an hour later the result was announced.

A large gathering of media packed the hallway just outside the caucus room as MPs gathered for the leadership vote.

Emerging from the caucus room with Mr Swan by her side, Ms Gillard said she felt honoured.

"I feel very honoured and I'll be making a statement shortly," she told reporters.

Labor is now expected to quickly get itself on an election footing to take advantage of the fresh start offered by a new leader.

While Labor had remained a nose ahead on a two-party preferred vote in the opinion polls, Mr Rudd's personal support was sliding.

Ms Gillard appears to have stronger voter appeal against Tony Abbott and Labor will want to capitalise on that before she gets bogged down in the difficulties of leading.

The question for Mr Rudd now is whether he will quit his seat of Griffith after the stunning ambush on his leadership.

Mr Rudd will no longer travel to Toronto for the G20 leaders summit this weekend.

A spokesman for Mr Swan said the new deputy prime minister would attend the G20 instead and would leave Friday for Canada.

Mr Rudd was accompanied by senior ministers John Faulkner and Kim Carr and backbenchers Jon Sullivan and Roger Price as he left the party room.

His demise brought an immediate response from the Christian lobby, which may not be impressed with an unmarried, childless prime minister.

It is unclear whether Ms Gillard's partner Tim Mathieson may move into the Lodge with her.

In a statement, the Australian Christian Lobby congratulated Ms Gillard on becoming Australia's first female prime minister.

It urged Ms Gillard to confirm "the values in society that proved attractive to many Christians throughout Australia under Mr Rudd".

Labor returning officer Michael Forshaw, who announced the outcome of the party room meeting, said it had been a difficult time for both Mr Rudd and the Labor Party.

"He led us to victory in 2007, a victory that was achieved when many people thought that we would still be spending more years in opposition," he said.

"That is a great achievement, he did that with Julia Gillard as the deputy leader."

Senator Forshaw said he is now looking "confidently forward to the next election", led by the new team.

Outgoing MP Belinda Neal told AAP the change would enable Labor to get its message out.

"We've had so many successes but at the same time we stopped communicating to the electorate," she said.

"With Julia Gillard we have an opportunity to clarify the message and really re-engage."

Julia Gillard will be sworn in as prime minister by Governor-General Quentin Bryce at 12.30pm (AEST) on Thursday.

Treasurer Wayne Swan also will be sworn in as deputy prime minister at the Government House ceremony in Canberra.

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More about: AAP, Labor Party

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