Scott Morrison will become the 30th prime minister of Australia after defeating Peter Dutton and Julie Bishop in a three-way race for the Liberal leadership.
Mr Morrison, who has served as Treasurer since 2015, won the leadership contest 45 to 40 votes in the party room ballot, with the motion to force the spill also carried 45 to 40.
Energy Minister Josh Frydenberg was elected deputy leader.
Government Whip Nola Marino said Malcolm Turnbull called the spill for the positions.
“As you all aware, there was a ballot conducted in the party room for the leadership of the Liberal Party. The successful candidate was Scott Morrison. He won this vote 45-40 to Peter Dutton,” she said.
“In relation to the deputy’s position, this was one in an overwhelming sense, in a majority, an absolute majority, by Josh Frydenberg.”
Mr Turnbull is expected to resign from the parliament altogether, triggering a by-election in his Sydney seat of Wentworth.
This is the country's seventh prime minister in 11 years.
The Liberal party’s only Indigenous member Ken Wyatt told NITV News prior to today's meeting Mr Morrison was his preferred choice.
“I do like Scott Morrison’s approach to a range of social issues and challenges that we face as a nation.”
On Tuesday, Mr Turnbull held off a leadership challenge by Mr Dutton by 13 votes.