KEVIN Rudd has won the Labor leadership spill, beating Julia Gillard 57 votes to 45.
Deputy prime minister Wayne Swan has quit as has Senate leader Stephen Conroy.
The Australian has reported that Penny Wong has been elected as Labor's new leader in the Senate.
Sky News reports that Anthony Albanese and Simon Crean are currently contesting the deputy prime minister position.
Ms Gillard went on live TV this afternoon and called a ballot for the Labor leadership to resolve the leadership issue, even though she hadn't been formally challenged.
"All of these issues need to be resolved tonight," she said.
"We cannot have the Government or the Labor Party go to the next election with a person leading the Labor Party and a person floating around as the potential alternate leader."
That was why the loser must retire, she said.
Read more at news.com.au
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