Prime Minister Julia Gillard

Yesterday Julia Gillard was Kevin Rudd's Deputy and today she has his job. Only months away from a general election, the Labor Party decided they needed to dump Kevin Rudd if they hoped to win another term. Late last night we heard there were rumblings that something was going on in Canberra - pollies and the press were glued to their mobiles because the unthinkable was about to happen - there was an expected leadership spill. The lights in Parliament House in Canberra burnt brightly all through the night and by morning, the numbers had all been crunched and Julia had them all in the bag. Everyone knew what the outcome would be before she set foot in the Labor Caucus meeting scheduled for 9 am this morning and it took only 35 minutes for the party to decide her fate - she was elected unopposed and became our first female Prime Minister. The expected leadership battle didn't eventuate, Kevin Rudd acknowledged that the party's factional power brokers had lost faith in him and he decided not to stand.

"I'm well aware that I am the first woman to serve in this role but can I say to you, I didn't set out to crash my head on any glass ceilings" she added.

Gillard and her new deputy Wayne Swan, were swon into their offices by Australia's first woman Governor-General within hours of the ballot. Wayne Swan will keep his financial portfolio as treasurer and will fly to Canada on Friday for the G20 summit in Rudd's place. He was also elected unopposed.

At lunchtime, an emotional Rudd gave his final speech at Parliament House flanked by his wife and three adult children and said he thought that keeping Australia out of recession during the global financial crisis was one of his main achievement and also his decision to say "Sorry" to the stolen generation of indigenous Australians. He said he would contest the next election and continue to serve his party in any way he could.

Looking pale and emotionally drained, Kevin Rudd decided to attend the last sitting of Parliament this afternoon. The Leader of the Opposition Tony Abbott said it was unfortunate that a Prime Minister elected by the Australian people should have his term cut short in this way and a rare moment of goodwill swept through the chamber as all members agreed.