Australian PM faces down leadership challenge

Australian prime minister Julia Gillard has faced down a leadership challenge, emerging victorious from a party vote after former leader Kevin Rudd made a last-minute decision not to run.

In a tense day of political manoeuvring, Gillard called the shock ballot as internal unrest reached fever pitch in the ruling Labor party which is floundering ahead of general elections in September.

After being re-appointed as Rudd withdrew and the challenge evaporated, a defiant Gillard said she now planned to get on with governing the country.