Prime Minister Julia Gillard has stared down a challenge from predecessor Kevin Rudd to decisively retain the leadership of the federal Labor party.
"Today I have received the overwhelming support of my colleagues," Prime Minister Julia Gillard told reporters after her overwhelming win.
"Australians have had a gutful of seeing us focus on ourselves," she told reporters in Canberra on Monday.
"Today I want to say to Australians one and all, this issue, the leadership question is now determined.
"I can assure you that this political drama is over."
She had received the overwhelming endorsement of her colleagues in the vote on Monday morning.
Ms Gillard said she had given Australia a proper explanation about her rise to the top job in 2010.
"I accept I should have explained that at the time," she said.
Ms Gillard acknowledged the infighting of the past week had been ugly at times.
"Mr Rudd has been an amazing advocate of Australia's interests on the world stage," Ms Gillard said.
The PM said that Craig Emerson will continue as acting Minister for Foreign Affairs until one is appointed.
Ms Gillard told reporters that united, the Labor Party could "absolutely win the next election".
"I am confident that we can win that election," she said.
The 2013 election would be about competing visions for the future.
The Labor vision was for a fairer nation with a modern economy, great quality schools and top health care, Ms Gillard said.
"I feel impatient because I want to get on with the job of building this nation's future," she said.
Ms Gillard refused to comment on whether the Ministers who supported Kevin Rudd will keep their jobs.
"I will announce a ministerial reshuffle in the next couple of days," she said.
Ms Gillard said she had learned from the experience, realising she needed to be a stronger advocate of the Labor party's achievements to address community opinion.
"I intend to be a stronger and more forceful advocate of what we are doing and what we are achieving for the Australian people," she said.
Ms Gillard said it was a difficult and disappointing day for Mr Rudd and his family.
"A very tough day indeed," she said.
But the prime minister said Mr Rudd must be honoured for his many achievements, which included the apology to the Stolen Generation, guiding Australia through the global financial crisis and his "amazing advocacy" as foreign minister.
Ms Gillard said the party would move forward as a united team.
"We have come together before and we will do so now," she said.
"I am absolutely confident of that because at the end of the day as Labor people we are driven by a common purpose and a common set of values, a common belief in what we want for Australia's future as a stronger and fairer nation."
Ms Gillard told reporters that united, the Labor Party could "absolutely win the next election".
"I am confident that we can win that election," she said.
The 2013 election would be about competing visions for the future.
The Labor vision was for a fairer nation with a modern economy, great quality schools and top health care, Ms Gillard said.
"I feel impatient because I want to get on with the job of building this nation's future," she said.
Ms Gillard said many Australians would have read commentary about the Labor leadership but in the end her colleagues had shown courage and purpose.
"I actually believe deep down in their souls Australians don't look at politicians and think we can't read opinion polls," she said.
"When they look at politicians, actually, the doubts that they have is that we are in it for a purpose, that we are in it with some courage to get behind a purpose that we believe is right."
Labor MPs and senators had demonstrated on Monday that they had courage and a sense of purpose, the prime minister said.
RUDD 'BEARS NO GRUDGES'
Kevin Rudd has congratulated the PM on her strong win in the caucus leadership ballot.
Mr Rudd told reporters he "bears no grudges."
"I bear no one any malice and if I've done wrong to anyone with what I've said and what I've done I apologise," he said.
Mr Rudd said it was time the "wounds were healed" within the party.
"To Julia - I accept fully the verdict of the caucus and I dedicate myself to working towards her re-election as PM," Mr Rudd said.
Mr Rudd played up his record as foreign minister, claiming Australia had led the way in a number of global initiatives including debate on the crisis in Syria.
"I'm proud of all these things," he said.
"We are a middle power with global interests and with regional interests."
He thanked the Department of Foreign Affairs and Trade and the agency AusAid.
Mr Rudd paid tribute to his office and departmental staff.
Mr Rudd said he believed he was doing exactly the right thing when he challenged for the Labor leader, and when he resigned last week as foreign minister.
He said he knew it would be tough.
"But I was not about to go and squib it," Mr Rudd said.
"We Queenslanders are made of different stuff to that," he said.
Mr Rudd said he fully accepted the verdict of caucus.
"I dedicate myself to working fully for (Ms Gillard's) re-election as the prime minister of Australia," he said.
"I will do so with my absolute ability dedicated to that task."
Mr Rudd will continue as the member for Griffith and beyond the next election if re-elected.
"I will continue with the support of my local community," he said.
Mr Rudd thanked his family for their support, especially his wife Therese, whom he described as his rock.
"Family is everything. I could do nothing in life without their support," he said.
GILLARD EMERGED SMILING
Ms Gillard emerged smiling from Monday morning's party room meeting and said she would hold a press conference shortly.
The prime minister won 71 votes from the Labor caucus to Mr Rudd's 31, making it the biggest win in a Labor leadership ballot in 30 years.
NSW MP Michelle Rowland, who would have supported Ms Gillard, was absent from the meeting after having a baby last week.
Ms Gillard, who ousted Mr Rudd as prime minister in June 2010, had been expected to win with at least two thirds of the vote.
Party returning officer Chris Hayes said once the vote results were read out there was clapping and a certain amount of relief on the faces of members and senators.
"The mood, it is fair to say, was reasonably tense," he told reporters in Canberra.
"As a result of the conclusion of the ballot, most members are happy that this matter has now been determined.
"They now see this news as the vehicle to move forward."
Mr Hayes said Ms Gillard and Mr Rudd each spoke to caucus for about three minutes.
Mr Rudd told caucus he would support Ms Gillard.
"One of the major things he indicated was that at the conclusion of this ballot he would be working for a unified Labor team," he said.
MP Dick Adams, who joined Mr Hayes, agreed.
"He said he would be right behind Julia," he said.
Asked how Mr Rudd was after the ballot, Mr Hayes said: "He seemed fine."
Mr Hayes said he believed the result will have a unifying impact on the party.
"The prime minister now has been shown to have the overwhelming support of caucus," he said.
The ALP hopes the leadership ballot will end the months of leadership speculation. Mr Rudd has vowed publicly several times that he will not challenge before the next election.
Mr Rudd decided to enter the leadership ballot - although he said the timing was not right for him - because he believed he was the best person to lead Labor in an election against Tony Abbott.
"Think carefully about the survivability of this government at the next election," he told the Seven Network on Monday, two hours before the meeting.
Five senior ministers - Anthony Albanese, Martin Ferguson, Robert McClelland, Chris Bowen and Kim Carr - backed Mr Rudd.
But the rest of the ministry was firmly on Ms Gillard's side, with a number of them publicly attacking Mr Rudd's time as prime minister, and at least three refusing to serve under him again.
'SPIRIT OF HARMONY'
There was a spirit of harmony in the Labor caucus room during Monday's leadership ballot, a government backbencher says.
Graham Perrett, whose Queensland electorate neighbours leadership challenger Kevin Rudd's, said the result - an emphatic win for Prime Minister Julia Gillard - was not a great surprise.
He said the votes had pretty much firmed on Friday.
Mr Perrett, who had threatened to resign if Mr Rudd returned to the top job, described the caucus mood as "workman-like", saying people just wanted to get it over with so they could focus on selling the Labor message.
"There was lots of goodwill in the room," he told Sky News.
He joked about Monday being Harmony Day.
"I thought it was going to be an ironic day, but in terms of the decisive ballot, there was as much harmony as you could have in the ballot," Mr Perrett said.
The umpire is the caucus and the umpire has decided, he said.
TWITTER ABUZZ
The twittersphere was abuzz on the result of Labor's leadership ballot.
Sydney Morning Herald chief political reporter Phillip Coorey was the first to tweet an unofficial result.
"PhillipCoorey Gillard wins 73 29," he wrote on Twitter about 10.48am (AEDT).
That led to a flood of tweets from journalists, news websites and political junkies using popular hashtags like #kevenge and #respill - some minutes before the official vote came in at 71 for Prime Minister Julia Gillard and 31 for Kevin Rudd.
Jack Attack wrote: "Kevin, the party has spoken. It's time to leave the front bench immediately and head to Redemption Island. #auspol #respill"
KHusky, a Rudd supporter, expressed his disappointment.
"Sad, sad day for Australia as Julia Gillard voted to continue on as PM. People don't have a choice in anything these days. #respill"
Nick Carson tweeted: "Finally, #ReSpill is Over. Can we talk about relevant politics now? #auspol".
Marie Nyssen said she had lost faith in the Labor Party.
"Think I've just turned into a liberal voter.. The #alp has failed once again #auspol #kevenge."
Tom WhittyAlright said: "I'm ready for the main event now.. #Oscars .. The big question though.. Will #krudd crash that party too ? ? #kevenge".
Just as the caucus entered the meeting room, Mr Rudd's wife, Therese Rein, thanked his supporters on her Twitter account.
"To the thousands and thousands of people who have been expressing support & love & encouragement, thank you from the bottom of our hearts," she said.
DOLLAR FALLS AFTER BALLOT
The Australian dollar fell after it was announced that Julia Gillard had beaten Kevin Rudd in a caucus vote for leadership of the Labor party.
At 1050 AEDT on Monday it was announced that Gillard had won 73 to 29 votes, in a secret ballot which included 102 members of the party.
By 1055 AEDT, the currency had fallen to 106.90 US cents, compared with 106.97 cents just before the result was announced.
The Australian dollar finished Friday's local session at 107.17 US cents.
CALL FOR NO-CONFIDENCE MOTION
Earlier, former Liberal leader Malcolm Turnbull said parliament should debate a no-confidence motion against the Gillard government when parliament resumes at midday.
"The one thing (the government) could do that the Australian people would thank them for is to call an election," he told ABC Television.
"A no-confidence motion would achieve that, but we need the independents to vote for it."
Mr Turnbull described the Gillard government as "the most dysfunctional, chaotic government we have ever seen".
"They make the Adam's Family look functional."
While the government was "falling to bits" and tearing itself apart business confidence in Australia was plummeting, he said.
"The damage ... this dysfunctional government has done to the economy of Australia, the jobs that it has destroyed by the lack of leadership are running into the tens, if not hundreds of thousands," Mr Turnbull said.
VOTE MAY NOT BE THE END
Doug Cameron, a declared Kevin Rudd supporter, says a resounding win for the prime minister in Monday's Labor leadership ballot might not be the end of the matter.
"If Julia Gillard wins today and we end up in the same position as we are now, in terms of the polls, in several months time, then my view is the same people who installed Julia Gillard will be looking for a candidate to replace Julia Gillard," he told ABC Radio.
If that happened Mr Rudd would be the only option, he said.
