Gillard had been frequently asked if she wanted the top job and always diplomatically spoke of her willingness to support the Labor Party and Rudd, deflecting any speculation of a leadership challenge.
In pictures: Julia Gillard's journey so far
But something changed yesterday and this morning a vote from the Labor caucus saw Julia Gillard elected unopposed as the new Prime Minister of Australia. Wayne Swan was elected Deputy Prime Minister while still looking after the Treasury portfolio.
Related video Julia Gillard to call August election