JULIA GILLARD has been re-elected unopposed as leader of the Labor party. Patrick Lion reports live. WATCH NOW
Get all the latest updates by following our rolling coverage below
5.29pm: Opposition Leader Tony Abbott said the "civil war" within the Labor party goes on and the only way to stabilise the situation is to have an election.
He said today was "a remarkable, even bizarre day" in Australian politics.
"I want to say to the Australian people that you deserve a government focused on you, not on itself."
He said the leadership issue had not been put to bed.
Mr Abbott said the Coalition "stands ready" to offer voters a secure and stable alternative.
``We have budget deficits streteching as far as the eye can see and instead of focusing on that, the government is focus on its survival."
Mr Abbott said the Coalition would continue talking to the crossbench MPs about their support for Labor.
"Minority government is an experiment that had failed," he said.
"The only way to get stable a stable government is to have an election."
5.15pm: Julia Gillard has told a media conference she is grateful to her colleagues for the support they have shown her.
Simon Crean has asked Julia Gillard to call a leadership spill and said he will not be standing as leader but will put up his hand as deputy leader.
"We've got a lot work to do, and we will continue to do it," she said.
A jubilant Prime Miniser Julia Gillard and Deputy PM Wayne Swan walk back to her office after winning the Labor leadership spill. Picture: Kym Smith Source: News Limited
Ms Gillard said she had never sought high office for its own sake and she stressed she has plenty to do.
"The whole business is completely at an end," she said.
Deputy Prime Minister Wayne Swan said there was "pretty strong support" for the PM in the party room.
Mr Swan said today's vote settles the matter of the Labor leadership for good.
5.01pm: The Prime Minister and her deputy, Wayne Swan, are about to hold a press conference in the Blue Room. The PM's staff clapped her and cheered as she returned to office. Meanwhile, Kevin Rudd has put the statement he gave to caucus on his Facebook page.
4.57pm: Chief government whip Joel Fitzgibbon says he is considering whether he will continue in the role following Julia Gillard's success in caucus.
Mr Fitzgibbon said he had been "very concerned" about the state of the party but had to accept the outcome of today's meeting.
He said he was hopeful that the leadership issue would be put to bed.
"If my resignation as chief whip helps for it to be over then so be it," Mr Fitzgibbon said.
4.47pm: Chris Hayes has announced the result outside the party room in Parliament House in Canberra.
"We only had two nominees, one for prime minister, one for deputy prime minister," Mr Hayes said.
"It puts beyond doubt, the leadership of the parliamentary Labor Party," the member for Fowler told the waiting media.
4.34pm: Prime Minister Julia Gillard has entered the caucus room looking confident.
She walked past reporters with around 20 Labor MPs and simply said: "G'day".
4.28pm: "Only circumstances I'd consider return to leadership is if there's an overwhelming majority asking me to return", Mr Rudd said.
Anthony Albanese said today that he would "never support" a spill motion against a Prime Minister.
He said he believed Mr Rudd had done the right thing by declaring he wouldn't challenge.
"Julia Gillard will continue to be the Prime Minister," Mr Albanese said.
He said if Mr Crean continued with his intention to challenge as deputy prime minister he would vote for Wayne Swan.
"I think Mr Rudd has made the right decision," Anthony Albanese said.
"I've actually got a caucus meeting at 4.30pm," he said.
4.24pm: Mr Rudd told reporters that he was sticking to his often-stated promise that he would only make a return in the “overwhelming majority” of his colleagues backed him.
Those numbers don’t exist and Mr Rudd says he will therefore not be putting his name forward as leader.
4.18pm: Labor MPs Tony Zappia and Anthony Byrne just came out of Mr Rudd's office.
Neither would say if Mr Rudd had the numbers or not.
4.05pm: Allan Griffin, Rudd's numbers man, has just walked into the former PM's office.
3.59pm: Rudd's backers urge him to run
Kevin Rudd's camp says there are 20 MPs in the former prime minister's office urging him to run for the Labor leadership. Leader of the House Anthony Albanese just entered.
3.15pm: Swan still backs Gillard
TREASURER Wayne Swan has tweeted his support for Prime Minister Gillard this afternoon.
"As I said yesterday, @JuliaGillard is as tough as they make them- she'll win today & on 14 Sept because she's got the reforms for the future," Mr Swan said.
Independent MP Bob Katter told News Limited he was uncertain if he would back Kevin Rudd if he was made prime minister.
He said he would want any Labor leader to uphold his 20-point list that he put forward when deciding the 2010 election if he was to give them his support.
A senior Gillard supporter told News Limited they were confident the Prime Minister would have the numbers to win.
3.05pm: Down to the wire
Senior cabinet sources have told News Limited the "numbers are very tight" for the Labor leadership vote.
It is still unclear if Mr Rudd will run, our own Lanai Scarr reports.
2.55pm: QT in pictures
WHILE the numbers are being sought and the Labor party prepares to vote for anew leader, here are some lighter moments from Question Time you may have missed. We start with a chipper looking Kevin Rudd.
Kevin Rudd grins like he's winning shortly after arriving at Question Time. Picture: Kym Smith Source: News Limited
Kevin Rudd dreams of his ideal outcome at 4.30pm AEDT...
Victory is mine? A buoyant Kevin Rudd gets excited before the announcement of the leadership spill. Picture: Kym Smith Source: News Limited
2.47pm: Now for the spill
THE LABOR Caucus is set to come together at 4.30pm AEDT for a ballot that will determine the country's Prime Minister and Deputy Prime Minister, our own Jessica Marszalek reports.
It will come just three hours after Simon Crean, now dumped from the frontbench, made his calls for Julia Gillard to throw open the competition and end the games that have enveloped the Government this week.
While Kevin Rudd has not yet responded, it’s believed he will throw his hat in the ring.
2.40pm: No confidence motion fails
SPEAKER Anna Burke has announced that an absolute majority has not been reached on the no confidence motion.
Prime Minister Gillard successfully calls for an end to Question Time as she said it was clear the Coaltition was no longer interested in proceedings.
2.35pm: Voting on no confidence begins
MPs are currently voting in the House of Representatives on Tony Abbott's motion of no confidence in Prime Minister Julia Gillard.
Meanwhile, Tony Abbott and Kevin Rudd have more in common than a desire to see Julia Gillard out of a job our own Sarah Blake reports, as both are wearing matching sky blue ties.
2.20pm: Bookies aren't backing Gillard
BETTING agencies have hopped onto the political chaos in Canberra and have given current Prime Minister Julia Gillard an outside chance at $6.00 to retain the top job, while Kevin Rudd is the re-hot favourite at $1.10.
2.15pm: History in the making
THERE are three rows of neatly dressed girls who filed into the public gallery shortly after 2pm, our own Sarah Blake reports.
No doubt they started their day unaware they were about to witness the last few hours of Australia's first female Prime Minister.
2.08pm: No confidence vote
OPPOSITION Leader Tony Abbott has moved to suspend standing orders and to move a motion of no confidence in Prime Minister Julia Gillard.
"This is about the decent honest hard working people of Australia who deserve a strong and stable and competent government," Mr Abbott said."We are a great people, momentarily let down by our very poor government'," he added.
"This is a government which has lost its way."
"For our country's good, you should go,' he told Ms Gillard. "Let's get rid of the faceless men and have a new government."
Today's Question Time is the last scheduled one for two months and it appears to have been shut down by Tony Abbott.
2.00pm: Question Time kicks off
Julia Gillard says the vote on the Labo leadership will happen at 4.30pm. Source: Supplied
PRIME Minister Julia has shown up for Question Time and it appears to be business as normal. The leadership vote is due for 4.30pm today.
"I have determined there will be a ballot for the leadership," she said.
"In the mean time, take your best shot."
1.42pm: Marles backs Rudd
LABOR MP Richard Marles has thrown his support behind Kevin Rudd to become the Labor leader.
When the member for Corio was asked by Sky News if the former PM will be running for the position in the recently announced leadership spill, he replied: ''Well I certainly think he should be''.
Meanwhile, The Prime Minister's officer has confirmed that Question Time will go ahead as normal.
1.20pm: Crean says hung parliament cannot go on
Simon Crean announces the spill on TV. Picture: Sky News Source: Supplied
Mr Crean said he was not standing as leader because he knew he didn't have the numbers, our own Lanai Scarr reports.
Asked on the consequences of a leadership change Mr Crean said it would be a matter for the independents.
"There is no point continuing on in a hung parliament in these circumstances," he said.
1.03pm: Crean calls for Labor spill
SIMON Crean has asked Julia Gillard to call a leadership spill. He said he will not be standing as leader, but will put up his hand as deputy leader .
''It seems to me the party through the government is in a stalemate position, something needs to be done . . . to resolve this issue once and for all . .
''I am asking her to call a spill of all leadership positions in the party."
''This is an issue that has to be resolved, there is too much at stake."
''This is a regretful position for me, my relationship with the PM goes back some time. This is not personal."
"This is about the party, its future and the future of the country," he said.
12.45pm: Spill speculation at fever pitch
SIMON Crean will hold another press conference in parliament house, our own Lanai Scarr reports.
It is likely to be about the Labor leadership. We'll be following live with a live video stream above.
12.40pm: All eyes are on Question time
FOLLOWING the Gillard Government's move to dump the four remaining bills from their controversial media reforms, all eyes are on Canberra ahead of Question Time.
Follow our live coverage from 2pm and tweets from our reporters on the ground.
12.35pm: Strategy time
IT IS understood the decision was made to drop the remaining media bills at a parliamentary strategy meeting this morning.
Communications Minister Stephen Conroy earlier told reporters negotiations on the bills, which include a measure to establish a public interest media advocate, were continuing with crossbenchers.
12.16pm: Labor withdraws media bills
THE remaining four media reform bills the Gillard Government had hoped to pass by the end of today, have now been withdrawn, AAP reports.
12.05pm: Meet the original faceless men
WHILE leadership speculation continues to dog the Labor party and the faceless men never seem far from the headlines, it's worth noting that today marks the 50th anniversary of the photograph that began it all.
It was fifty years ago that Sydney's Daily Telegraph captured the famous images of former Labor leader Arthur Calwell and his deputy Gough Whitlam standing outside in the cold "waiting for instructions" from the 36 faceless men of the Labor Party conference, writes our own Samantha Maiden.
11.47am: Abbott gets heckled
OPPOSITION Leader Tony Abbott has been heckled at a function where the government offered an apology to women who were forced to give up their babies for adoption in the 1960s and 1970s.
In emotional scenes, Prime Minister Julia Gillard apologised for the practise which left unmarried mothers with the feeling their own children would be better off elsewhere.
"We acknowledge your loss and grief," the prime minister said.
A number of women in the audience began yelling at Mr Abbott when he used the words "birth parents".
11.40am: PM, lift your game: Crean
Simon Crean has refused to say if he'd back Julia Gillard if a leadership vote is called, saying the question is hypothetical
The Prime Minister has been given a stern warning to lift her game by senior Labor statesman Simon Crean during a confidential conversation in her office.
Crean held the separate private talks with Julia Gillard and Kevin Rudd as the leadership stalemate continues to drag on the Government's performance.
He has bluntly said the Government and the Prime Minister should make fundamental changes and end what he called division and appeals to class warfare.
- Malcolm Farr, National Political Editor
11am: Julia Gillard will issue a national apology to mothers and children who suffered from forced adoption practices.
10.57am: 'It's like an episode of Bold and The Beautiful'
Manager of opposition business Christopher Pyne said if the government's media bills failed to pass the Parliament today it would be a vote of no confidence in Julia Gillard's government.
"And we would expect them to call an election immediately," Mr Pyne said.
He said the government was now akin to a ''Bold and The Beautiful" episode.
"This is no way to run a country," Mr Pyne said.
Christopher Pyne has compared the Labor Government to an episode of The Bold and The Beautiful, pictured actors Ronn Moss and Katherine Lang Kelly. Source: Supplied
10.25am: Communications Minister Stephen Conroy is holding a media conference
Communications Minister Stephen Conroy has told reporters there's no leadership spill.
''There's not going to be a leadership spill,'' he said.
''Julia Gillard has the overwhelming support and will continue to have the overwhelming support of the caucus.''
''Julia Gillard is much tougher than she is given credit for.''
9.46am: 'End the stalemate', Crean tells Labor
Simon Crean has ripped into the government's leadership, called on Labor to ''end the stalemate'' and refused to guarantee support for Julia Gillard if a leadership ballot was called.
The respected Labor elder statesman says leadership speculation is ''tearing at us from inside'' and called on Ms Gillard to call an end to the class warfare politics she has waged.
He has denied speaking directly with Kevin Rudd about running as his deputy if Mr Rudd was to seek to return as Prime Minister but did not directly answer when asked if supporters had approached him.
Simon Crean haas called on Labor MPs to unite. Picture: John Feder Source: News Limited
Despite his outburst at his own party's leadership, Mr Crean said this morning the party should ''unite behind'' Ms Gillard as leader.
He also called for supporters of Mr Rudd to stop destabalising the government, saying disunity is ''killing us.''
Simon Crean under pressure during a doorstop at Parliament House in Canberra this morning. Picture: John Feder Source: News Limited
''This is a situation in which the party needs to get its act together, the stalemate has to end,'' he said.
''We have to get the people who are destabalising to stop, the party has to focus on the future.''
When asked if he would vote for Ms Gillard if a vote was called today, he refused to confirm his support for the PM.
- Gemma Jones
Simon Crean told reporters that that Labor party needs to end the stalemate over the leadership and present voters with a united front. Picture: Sky News Source: News Limited
9.40am: Crean-Rudd plot to topple Gillard
Simon Crean is believed to be in discussions with key backers of Kevin Rudd to serve as his deputy on a joint leadership ticket.
Sources in the Rudd camp confirmed a deal was being brokered which could see Mr Crean back Mr Rudd to take back the leadership and serve as deputy prime minister.
Julia Gillard is also believed to have lost the support of another key Ministerial backer overnight.
Senior Rudd supporters this morning confirmed there had been ''movement'' late yesterday.
However, they were still trying to convince Mr Rudd to put his hand up.
''Simon is the big shift,'' a senior minister confirmed this morning.
- Simon Benson
9.30am: Fitzgibbon 'doesn't have the PM's back'
A LABOR MP has called on chief government whip Joel Fitzgibbon to resign if the day ends without a successful leadership challenge against Julia Gillard.
Queensland backbencher Graham Perrett said this morning it was the job of the chief whip to ''have the Prime Minister's back'' and given his comments yesterday he and other Kevin Rudd supporters should ''resign or resign'' come 5pm today.
''If he can't be loyal to the Prime Minister he needs to resign,'' Mr Perrett said.
Mr Fitzgibbon, a Kevin Rudd backer, yesterday gave an interview about the leadership speculation and said it would be ''silly" to suggest nothing was going on.
But he denied numbers were being counted.
- Lanai Scarr
9.20am: Liberal frontbencher Christopher Pyne taunted Kevin Rudd, saying he had made a mockery of Ms Gillard and Labor since losing the leadership in 2010.
''I think if Kevin Rudd had the numbers he'd have used them by now,''' Mr Pyne told reporters in Canberra.
''That's what we do in politics.''
Kevin Rudd looking relaxed during Question Time yesterday. Picture: Kym Smith Source: News Limited
9am: Backers of Julia Gillard and her predecessor Kevin Rudd are this morning rallying support within a restive Labor caucus amid intense media speculation of another leadership challenge.
The Gillard camp insists the PM still enjoys majority support within caucus while supporters of Mr Rudd suggest he has 49 votes, three short of a majority, with nine MPs undecided.
8.45am: Columnist Andrew Bolt writes Julia Gillard isn't just leading Labor to defeat. She is stripping the party of honour, leaving it with a legacy of shame.
8.30am: Kevin Rudd has emerged as the clear leader in our survey of our readers' most preferred Labor leader, with Julia Gillard coming an emphatic last.
Mr Rudd scored 53.8 per cent of the primary ''first choice'' vote - with Julia Gillard scoring 49 per cent as the ''least preferred'' choice.
Simon Crean was safely ensconced in third place.
Bob Carr and Stephen Smith appear to have a lot to do to capture the public's imagination.
The survey was taken by 15,811 readers.
8.20am: Independent MP Tony Windsor has warned federal Labor is heading for oblivion if the party's leadership crisis is not resolved quickly.
Mr Windsor, who has supported the minority Gillard government since the 2010 election, is clearly frustrated by the latest internal wrangle.
''It's a one-way street to oblivion,'' he told ABC Radio this morning when asked whether the Labor leadership needed to be settled quickly.
8am: Labor polling taken on the eve of Kevin Rudd's political assassination revealed a rebound for the overthrown PM, an exclusive News Limited report revealed today.
The polling, which suggested Labor could still have won an election in 2010 under Mr Rudd's leadership, was kept a secret from him, most senior ministers and the majority of the Labor caucus for fear it could have unravelled plans for the coup already under way.
The secret polling also contradicts the official Labor research used at the time to convince MPs to replace Mr Rudd.
7.20am: Meanwhile, Tony Abbott is in the spotlight again for the wrong reason. Allegations he punched the wall either side of university rival Barbara Ramjan in 1977 are backed up today in journalist David Marr's new extended book version of his Quarterly Essay: Political Animal by a mystery man claiming to be a witness.
Opposition Leader Tony Abbott during Question Time yesterday. Picture: Kym Smith Source: News Limited
7am: With Federal Parliament to sit today for the last scheduled session before the May 14 Budget, chief government whip Joel Fitzgibbon last night appeared to start a countdown for a leadership change, saying it was a ''silly concept" that Labor could make a switch between the Budget and the September 14 election.
