Speculation abounds after a dramatic night in Federal politics. A leadership spill in the Labor party has ousted Julia Gillard and installed Kevin Rudd as party leader.

Almost three years to the day since Kevin Rudd was removed from his job in a near identical manner, former Prime Minister Julia Gillard has lost the Labor leadership in a Caucus ballot by 57 votes to 45. Ms Gillard handed in her commission to the Governor General last night, leaving the position of Prime Minister open.

Events are now unfolding on the last sitting day of Parliament, with speculation of a number of outcomes. New Labor leader Kevin Rudd is being sworn in as Prime Minister until the next election, he may seek to capitalise on his upswing in popularity and shunt the election forward in time. Some reports say the Opposition may call for a vote of no confidence which, if Rudd does not have enough support, could see Tony Abbot installed as caretaker Prime Minister until an election can be held. Mr Abbot has this afternoon indicated he doesn't have current plans for a no confidence vote.

It is a sticky situation, politically speaking, adding fuel to what was already set to be a hotly-contested election. For a full run down on the Constitutional implications and possibilities for the election, analyst Antony Green has compiled a concise description.