Australia`s Julia Gillard has become the country`s first female prime minister after Kevin Rudd stood aside from a party ballot.

Mr Rudd took the step in the knowledge he would suffer an embarrassing defeat, correspondents say.

His successor said the government had been losing its way and she promised to make it strong for this year`s general election.

The Labor Party had suffered a sharp drop in support in opinion polls.

Ms Gillard, who was deputy prime minister before the challenge to Mr Rudd, stood unopposed at a vote of the Labor Party`s 112 members of parliament at a meeting on Thursday morning.

Finance minister Wayne Swan was elected the new deputy leader, also unopposed.

Ms Gillard was born in Barry Island in Wales, moving to Australia with her family at the age of four.

`Losing its way`

Emerging from the party vote at Parliament House in Canberra, Ms Gillard told reporters: "I came to the view that a good government was losing its way.

"I believe too I have a responsibility to make sure at the next election that Labor is there at its strongest."

BDST: 1225 HRS, June 24 2010
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