Rudd ousted over RSPT row

Release Date: 2010-06-24

Julia Gillard became Australia’s first female Prime Minister today after Kevin Rudd stepped down ahead of a planned parliamentary Australian Labor Party (ALP) leadership vote, with his handling of the resources super-profits tax (RSPT) row being blamed as a key factor in prompting the party's factional leaders to switch their support away from him.

Gillard was elected as the new leader of the ALP unopposed this morning after challenging for the leadership.

Rudd had initially said in press conference last night a ballot would be held this morning to decide the leadership debate but decided instead to step down after its thought it became apparent he would not have the backing of enough party members to retain his position.

Addressing a press conference this morning Gillard announced she would immediately pull the government’s A$38 million (US$33.2 million) advertising campaign supporting the RSPT and requested the mining industry do the same in a bid to bring the bitter fight between the two to an end.

Gillard also opened the door for negotiations with the industry over the tax which is believed to have been one of the key issues which resulted in Kevin Rudd’s recent decline in the polls as well as the shelving of his emissions trading scheme.

Rudd had been widely criticised for his lack of consultation with the industry before announcing the 40% tax last month.

Over A$20 billion in new resource investment in Australia has been put on hold by global miners since the RSPT was announced on 2 May.

Rudd's sudden downfall makes him the first Labor prime minister to be dumped from office before completing a first term.

Gillard will now have to unite the Labor Party with a federal election just months away.

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