Julia Gillard and Wayne Swan arrive for Question Time in Parliament, where the PM announced the Labor leadership would be put to a vote. Despite speculation that Kevin Rudd would run, he ruled out the prospect moments before the caucus meeting. Source: The Courier-Mail
OPPOSITION Leader Tony Abbott says the civil war within the Labor Party will continue despite the leadership showdown on Thursday.
"Nothing is resolved," he told reporters in Canberra.
"The civil war will continue as long as Kevin Rudd and Julia Gillard are in the parliament."
He described the events as a remarkable and bizarre day.
"I want to reassure people that it doesn't have to be this way," he said.
"We are currently let down by a bad government getting worse.
"But that will change."
Mr Abbott said the coalition was ready to deliver its plans for Australia "as soon as we can".
What Australia needed "right now at a difficult time in the life of our nation" was an immediate election.
"We cannot wait until September 14," Mr Abbott said.
"If the prime minister was concerned about the party, if she was concerned about the country, if she was less concerned about herself and her own survival, there would be an election now."
Prime Minister Julia Gillard retained the leadership of the Labor party after Kevin Rudd decided against standing for a leadership vote in the ALP caucus.
No one else challenged Ms Gillard for the leadership at the spill.
Treasurer Wayne Swan remains as deputy prime minister after Simon Crean withdrew his nomination.
Mr Rudd said the only circumstances under which he would stand for the leadership was if there was an overwhelming majority of the parliamentary party requesting his return.
"I'm here to inform you that those circumstances do not exist," he told reporters in Canberra, just minutes before a caucus meeting at 4.30pm (AEDT).
"I take my word seriously."
Mr Rudd said to "all and sundry" across the Labor party and the government that "we unite in ensuring that Tony Abbott does not simply walk into the Lodge as if it's his own personal property".
Independent MP Bob Katter predicted the Labor leadership would come up again before the September 14 election.
Kevin Rudd in the house of representatives chamber at Parliament House in Canberra. Picture: Kym Smith
"I would think it's as inevitable as the sun rises," he told Sky News on Thursday.
But he'd be worried if Julia Gillard didn't continue to lead Labor.
"If she's not in charge then there is a serious situation," Mr Katter said.
The Queensland MP says won't be siding with Opposition Leader Tony Abbott.
"With the events of the last two weeks, I refuse to vote with Tony Abbott," he said.
"I thought that was outrageous games playing."
Anthony Albanese said Julia Gillard would stay prime minister after the caucus meeting.
"I restate my view, again, I will never support a spill motion against a sitting prime minister," Mr Albanese said.
"Julia Gillard will remain prime minister after this meeting."
Mr Albanese said he would support Wayne Swan as deputy prime minister.
Dumped minister Simon Crean said earlier on Thursday that he would stand for the deputy position.
Ms Gillard sacked Mr Crean from her ministry on Thursday afternoon.
Mr Crean entered the caucus room without speaking to reporters.
Earlier, Queensland Premier Campbell Newman called for an immediate federal election irrespective of who Labor elects as its leader in a caucus meeting this afternoon.
Mr Newman said his one message for the ALP was it was time for the Australian people to vote for the country's Prime Minister.
"The country cannot afford to waste more time and the outgoing paralysis that we've seen," he said.
"The last two and a half years have been wasted years for this nation because of the power balance in Canberra and we've seen a failure of good government and a failure of clear direction for this nation."
Mr Newman would not comment on who he expected to emerge as Prime Minister, but said it would be easier to work with a Rudd Government.
"It's been difficult to work with the Gillard Government. What we need is somebody in there as Prime Minister to take the helm.
"Pick anyone you like but for God's sake then let us go to an election. Let's not wait to September."
A federal caucus meeting at 4.30pm (AEDT) on Thursday will allow a ballot for the leadership positions.
Mr Newman says he has watched the day's events in Canberra with "grim fascination".
"We need certainty now. We've just seen a group of politicos change the person who's in the top job and they're doing it again inside three years," he said.
"It's just not on, it's not the way business should be conducted and I think whoever the Labor party chooses as the Prime Minister this afternoon should go to an election because we need to take the nation forward."
Mr Newman dismissed speculation his leadership would be challenged next.
"I think I've got a great team of people. I have a team that works together and is actually delivering things for Queensland every day of the week."
Labor MPs will decide the fate of Prime Minister Julia Gillard in a caucus ballot at 4.30pm (AEDT), after she called a spill in the wake of demands from Kevin Rudd supporters.
Labor frontbencher Simon Crean met with Ms Gillard for a second time on Thursday morning expressing his concern about the direction of the government and to ask for a spill, but she declined it.
However, after meetings with other senior party members, including Leader of the House Anthony Albanese, the prime minister later told parliament at the start of question time that the ballot would be held.
Mr Rudd has yet to give any indication he will stand for the leadership.
But Mr Crean has told reporters he would himself run for the deputy's position.
It is understood Mr Albanese is Mr Rudd's preferred deputy, with Chris Bowen slated for the treasury role.
When he lost a leadership ballot in February 2012, Mr Rudd vowed that he would never again put his name forward.
At that time he only secured 31 votes to Ms Gillard's 71.
Mr Crean told reporters in Canberra the party was at a "stalemate" and something had to be done.
"This is not personal. This is about the party, its future and the future of the country," he said.
"It's not just about changing leaders but showing leadership. That is what we are elected to do."
Mr Crean said Mr Rudd had no alternative but to stand.
"He cannot continue to play the game of being reluctant," Mr Crean said.
Ms Gillard, who gave a rallying speech in parliament as the opposition attempted a no confidence motion, is believed to have a slim majority in the 102-member caucus, with only about 10 to 12 votes leaking to Mr Rudd since the last ballot.
Foreign Minister Bob Carr is overseas and cannot vote.
Opening question time, Ms Gillard challenged Opposition Leader Tony Abbott: "Take your best shot".
Mr Abbott said his no-confidence motion, which did not get to a vote, was about standing up for the "decent, honest, hard-working people of Australia".
"This is about reassuring the Australian people that we are a great people and we are a great country, just momentarily let down by a very poor government," Mr Abbott said.
Ms Gillard drew a line in the sand, arguing that the government had delivered on health, schools, workplace fairness and jobs.
"It is what it has done under my prime ministership and it is what it will do under my prime ministership from this day forth."
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