Profile: Australian PM Julia Gillard

Julia Gillard has become Australia's first female Prime Minister after Kevin Rudd stood down as Labor Party leader.

Australia's Deputy Prime Minister Julia Gillard speaks to the media after addressing a lecture themed "Women and Leadership" at a women's college in New Delhi in this August 31, 2009.[Xinhua]

"The next Labor prime minister and the first female prime minister of this country will be Julia Gillard," caucus returning officer Michael Forshaw told reporters in Canberra after emerging from a party room meeting.

Treasurer Wayne Swan was elected deputy leader unopposed.

Forshaw said it had been a difficult time for both 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.

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

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

New Prime Minister Julia Gillard said she is honored to be Australia's first female prime minister.

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

Small Business Minister Craig Emerson said the coalition will now have a great fight on its hands with Julia Gillard at the helm.

Asked if the Labor Party had done the right thing by Rudd, Emerson said: "Look Julia is prime minister, she worked hard for that, she has been a very effective deputy, I congratulate her, I think everyone does."

Emerson said the government will be very strong and unified heading into the election.

Gillard had been tipped to win up to 74 of the 112 Labor caucus votes.

Gillard is expected to make a full statement in the next 90 minutes.

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