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Speaking from Canberra shortly after the announcement yesterday, Ms King said she welcomed the new leader of the Labor Party.

"This morning I am very pleased that the Australian Labor Party caucus has been able to endorse Julia Gillard as the new leader of the Australian Labor Party, and Australia's first-ever woman prime minister,'' Ms King said.

"I welcome Julia Gillard as our new prime minister and am delighted to be part of a united team that is focused on supporting families, growing our economy, building our infrastructure and growing jobs into the future.

"Victoria can be very proud for having the first female prime minister from Victoria. Julia knows the region well, having the neighbouring electorate.''

Ms King paid tribute to former leader Kevin Rudd, who stood aside shortly before yesterday's historic leadership ballot.

"I want to pay tribute to Kevin Rudd for both the leadership he has shown today and the work he has done as prime minister of the country getting us through the global financial crisis.''

Ms King said it was an emotional time for party members.

"I've been through a number of these. It was a very emotional morning and I don't think anyone watching Kevin Rudd's conference could have gone away with a hard heart.''

Ms King would not comment on who she had planned to vote for in the leadership ballot.

"I've had a long-standing history of never stating or commenting on who I vote for.''

But Liberal candidate for Ballarat Mark Banwell said Ms Gillard's rise to prime minister could be put down to panic by the Labor Party.

"They are now going into an election with a leader that was not elected by the Australian people,'' Mr Banwell said.

"A leader who was put in power by a group of faceless party power brokers in the middle of the night.''

Mr Banwell said he expected an election would probably happen sooner because of the change of prime minister.

"They will probably try to maximise the advantage, the freshness and the novelty of a new leader."