Scott Morrison next PM of Australia, ousts Malcolm Turnbull

Liberal Party deputy leader Julie Bishop left and Prime Minister Malcolm Turnbull after Tuesday’s leadership spill

Speaking to the country for the first time since being elected by party members as Australia's 30th prime minister Friday, Scott Morrison said his priority in the coming days will be to address a drought that has struck the state of New South Wales.

"Many Australians will be shaking their head in disbelief at what's been done", he said.

Ahead of the vote economists had forecast a win for Mr Morrison would be a positive for the local currency.

"If the one of the more moderate alternatives in Scott Morrison or Julia Bishop take over then we'll likely see a bit of a relief rally back towards 0.7300 for the beleaguered currency, which saw its biggest loss in a year yesterday".

The Liberal party is the senior partner in the ruling conservative coalition.

Morrison won the ballot 45-40 over rival Peter Dutton, Australia's Minister for Home Affairs, after Minister for Foreign Affairs Julie Bishop was eliminated from the three-way contest.

His resignation would cause a by-election that could cost the government its single-seat majority.

Mr Turnbull condemned Dutton supporters for bringing down his leadership in an intense and bruising campaign, which the prime minister described as "an insurgency".

Mr Turnbull has become the fourth prime minister to be dumped by his or her own party before serving a full three-year term since the revolving door to the prime minister's office started in 2010.

The Governor-General also has the power to dismiss a prime minister if they have lost the confidence of parliament. Turnbull is a "social liberal and multi-millionaire former merchant banker", who the wire service says "has struggled to appeal to conservative voters and only narrowly won a general election in 2016".

He's the nation's sixth Prime Minister in six years.

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