Incoming prime minister Malcolm Turnbull says Australia and the Liberal party owe a great debate to Tony Abbott.
Mr Turnbull defeated Mr Abbott 54-44 in a party room ballot on Monday night.
"The burden of leadership is a very heavy one," he told reporters.
"Tony has discharged that as leader of the party and, of course, as prime minister over many years now and the achievements of the government that he has led have been formidable."
Mr Turnbull said his assumption was that the government would see out the full term and not seek an early election.
He vowed his would be a thoroughly liberal government committed to freedom, the individual and the market.
"It'll be focussed on ensuring that in the years ahead as the world becomes more and more competitive and greater opportunities arise, we are able to take advantage of that," he said.
The Australia of the future had to be a nation that was agile, innovative and creative.
"We have to recognise that the disruption that we see driven by technology, the volatility in change is our friend if we are agile and smart enough to take advantage of it."
Mr Turnbull said his election as Liberal leader had been a very sobering experience but one about which he was humbled.
The government would now have an economic vision and a leadership that explained the great challenges and opportunities the country faced, he said.
"We can handle those challenges, seize those opportunities and ... in a manner that the Australian people understand so that we are seeking to persuade rather than seeking to lecture."
He said there would be ministerial changes after this parliamentary sitting week is over.
Mr Turnbull will meet with the Abbott ministry on Tuesday and said ministers could choose to stay on for the remainder of the week.
Deputy Liberal leader Julie Bishop, who will remain foreign minister, is confident Mr Turnbull has the passion, energy and vision to lead the country during "this challenging time".
Mr Turnbull said the culture of his leadership would be thoroughly consultative and one that made decisions in a collaborative manner.
"The prime minister of Australia is not a president, the prime minister is the first among equals," he said.
Mr Turnbull pointed to the success of New Zealand prime minister John Key as an example of good governance.
His government would follow Mr Key's example by explaining complex issues and making a case for them.
"To be a successful leader in 2015 you have to be able to bring people with you by respecting their intelligence."
Mr Turnbull is not keen to change the coalition's climate change policy, saying he supported the "very, very good piece of work".
Ms Bishop said she expected the already announced carbon emissions reduction target of 26-28 per cent on 2005 levels by 2030 to remain in place.
