Prime Minister Malcolm Turnbull has emerged victorious in a sudden Liberal leadership ballot, seeing off Peter Dutton in a 48-35 split of Liberal party members.
Mr Dutton has now resigned his powerful position as Home Affairs minister and will move to the backbench, in keeping with the tradition of cabinet solidarity.
The government's chief whip Nola Marino confirmed the results of the leadership ballot in a courtyard at Parliament House on Tuesday morning.
The relatively narrow victory may not spell the end of Mr Dutton's leadership ambitions. Julia Gillard won her first ballot against Kevin Rudd 71 - 31 but went on to lose in a second ballot.
The contest came suddenly during a closed-door Liberal partyroom meeting when Mr Turnbull declared the leadership positions vacant, forcing challengers to declare their intentions.
Mr Dutton was the only challenger for the leadership. Julie Bishop was the only candidate for deputy and was re-elected without opposition.
Asked about the ballot, Ms Marino said the process was "orderly" as always.
The ballot was just of Liberal members, who decide the leader of their party. It did not include the 22 members of the Nationals.
Earlier, Prime Minister Malcolm Turnbull tried to quell tension within party ranks by abandoning plans to legislate emissions reduction targets.
But the move has failed to silence conservative critics within the Coalition.
Former Prime Minister Tony Abbott said the backflip showed his successor was willing to abandon his core beliefs.
“What we want to know is, where are this prime minister's convictions?” Mr Abbott told reporters outside Parliament House on Monday evening.
“We always thought that he was convicted on climate change issues. I think he probably still is. And it was a conversion of convenience this morning.”
The Liberal party room will meet on Tuesday amid growing speculation the Home Affairs minister Peter Dutton is considering a leadership challenge.
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