Kevin Rudd has ousted Kim Beazley to seize the leadership of the Labor Party.

The former diplomat from Brisbane beat Mr Beazley 49-39 to become Labor’s fourth leader in three years and will have less than a year to establish his credentials ahead of next year’s federal election.

Ms Gillard won the deputy’s position unopposed after former deputy Jenny Macklin declined to nominate.

Caucus spokesman Anthony Byrne announced the result about 10.50am and said both candidates had called for Labor to lock in behind its new leadership team.

Mr Byrne said Mr Beazley had told colleagues he believed Labor would win the election and wanted to see Kevin Rudd the next prime minister.

Mr Rudd had told his colleagues the election was winnable and would require all members to put aside divisions and work together.

Senate Leader Chris Evans was re-elected as was his deputy Stephen Conroy.

Mr Conroy’s election was seen as an act of reconciliation from the Rudd camp, with the Victorian senator closely associated with Mr Beazley.

The caucus decided to delay choosing its frontbench until Thursday.

When he agreed to a spill last Friday Mr Beazley said all frontbench positions would be up for election - a move seen as an attempt to dilute the influence of faction leaders who would have to lobby MPs for their own positions as well as the leadership.

The spill was triggered by a series of opinion polls in recent months showing Labor was performing well in two-party-preferred terms, but Mr Beazley was struggling to lift his personal approval rating out of the low-30s.

A week ago a Newspoll published in The Australian showed voters favoured a Rudd-Gillard leadership team ahead of Mr Beazley and former deputy Jenny Macklin by 52 percent to 27 percent.

The polls and general dissatisfaction with Mr Beazley’s performance sparked a spilt in the powerful New South Wales Right faction.

Half of its members told Mr Rudd he would have their support if he challenged before Christmas to resolve the leadership question and ”arrest the bleeding”.

Mr Rudd confronted Mr Beazley last Friday to issue a challenge, beginning a weekend of frantic lobbying aimed at about 20 key undecided MPs.

By Sunday it appeared Mr Rudd had won the lion’s share of the uncommitted vote, although Mr Beazley’s number crunchers maintained until the end that the 57-year old was on target to win.

Labor MPs will meet tomorrow to elect a new frontbench and Mr Rudd and new deputy leader Julia Gillard will spend this morning hurriedly nutting out a strategy for Parliamentary Question Time this afternoon.

Mr Rudd’s performance at Labor’s helm will be seen as a crucial first test of his ability.

The father of three’s election pitch was to promise a fresh voice to attract swinging voters while Mr Beazley, who led Labor to defeat in 1998 and 2001, argued he was the only person in Labor ranks to take on John Howard, who will seek a fourth term next year.

Mr Rudd, 49, is a Mandarin-speaking former diplomat who entered the political world in the late 1980s to become chief of staff to Labor’s Wayne Goss.

He later became head of the Goss Government’s Premier’s Department, before winning the seat of Griffith in 1998.

He moved to the frontbench in 2001 as foreign affairs spokesman.

He is not yet an Australian, but last night an Irish singer, Damien Leith, was named the Australian Idol for 2006.

In one of the closest contests in the program's history, the chemist, 30, from County Kildare, via Newtown, was a surprise winner on the reality television singing show, beating the bookies' favourite Jessica Mauboy, 17.

Looking shocked and dazed, Leith hugged and praised Mauboy as fans screamed and cheered. He called the victory unbelievable.

"All I can say is this has been the greatest time of my life. I've been on this show and everything that has come my way through this show," he said.

"I'm speechless. I should have thought of something to say."

Leith, who has never had formal music lessons but tackled Puccini's Nessun Dorma regardless, is an Australian resident and plans to become a citizen early next year. He won a car and a recording contract with Sony BMG.

At the media conference after the show Leith said that initially he had thought being an Irish citizen might mar his chances.

"[Australia is] like everyone says, 'Give them a go'. Since I've been here I've been given a go and never been judged in any way."

Leith was not the only one to emerge victorious. Last night the Australian Idol franchise, which had appeared destined to expire after a sharp ratings drop last year, seemed to have resuscitated itself.

Asked about reviving audience numbers - expected to reach more than 2.5 million last night - the judge Mark Holden said: "The Australian audiences had Viagra this year. They are tough, they are hard, they are rock solid."

Last night's final was an unorthodox one. Both contestants were a stylistic odd couple - Leith is a father of one who sings operatic rock, while Mauboy is a schoolgirl with a diva edge.

Only an average 1.9 million viewers across the mainland capital cities watched Kate DeAraugo win the final last year, compared with the 3.3 million who saw Casey Donovan win in 2004, making the show the highest-rating program of that year. The year before, 3.3 million watched Guy Sebastian win.

More importantly, voting was not translating into album sales for the previous winners. Sales of DeAraugo's album, A Place I've Never Been, were weak, and Sony BMG ditched Donovan.

However, over the past three weeks Idol has won its audience with its Monday night "verdict" episodes, with numbers of 1.4 million to 1.55 million viewers. Over the year the show has attracted an average audience of 1.6 million.

As early as 4pm yesterday hundreds of excited teen devotees blocked the entrance to the Opera House, queuing for the free outdoor concert. About 6000 fans attended a show with performances by Anthony Callea, Marcia Hines and her daughter, Deni, Guy Sebastian and Shannon Noll. Screaming 15-year-olds waved mobile phones and digital cameras in the air, snapping their heroes as they walked the red carpet.

Thorpe throws in the towel

SUPERFISH Ian Thorpe has confirmed speculation and announced he is quitting the pool.

The world-famous swimmer, 24, made the anouncement amid mounting concern and rumours about his future.

The five-time Olympic gold medallist and multiple world record holder has been battling health problems and fighting to regain his form over recent months.

But at a much-anticapated press conference today Thorpe - looking relaxed and happy - admitted that he had been questioning his commitment to swimming and was going to "discontinue my professional swimming career." 

"I'd been working towards this decision for quite some time," he said. "I'm a 24-year-old, and I'm only just 24 as well.

"I'm young enough to still see the new challenges and be able to accept them within my life.

"I'm also old enough now that I realise all of these accomplishments that have got me to this place in my life.

"I also know there is a lot of people out there that want me to keep swimming. I only hoped that I wanted to swim half as much as other people want me to."

Moments earlier Thorpe had described his career questioning in the wake of the last Olympics, saying:  "You can swim lap after lap looking at a black line, but all of a sudden you look up."

Thorpe is regarded as one of the greatest swimmers of all time after winning 11 world titles, five Olympic gold medals and setting 13 individual long-course world records.

Worn down by the grind of training, he took a year off after winning the 200 metres and 400m freestyle titles at the 2004 Athens Olympics and his comeback plans were thwarted by illness, injury and waning motivation.

He had a three-month sojourn in Los Angeles this year in a bid to revitalise his swimming.

Thorpe said he had felt in peak physically fitness during his time in LA, but also began to question his future in the sport.

"One other thing happened in LA, as I got physically fit, my mind also got fit, I started asking a lot of questions.

"And I started to look at myself as a person.

"That begged another question: What would my life be without swimming?

"It's been a security net for me. But what it's meant is I haven't balanced out my life the way I should.

"So I realised I had to prove other things and let swimming take a back seat at this stage.

"I'm looking at a next phase, and that next phase means I am realigning the most important thing for me to do.

"Swimming falls somewhere short, which is never the way it used to be.''

On the possibility of a comeback in the future, Thorpe joked: "I won't rule it out, I never rule anything out, but it's not going to happen.''

He did not want to reveal his future plans - although he has various business interests including a food line, fashion and a sponsorship with Adidas until 2012. 

Of his decision, Thorpe said: "It's emotional because I see my entire swimming career flash before my eyes.

"I've had a great career. It isn't the best time to be walking away from the sport but it's my time.''

He admitted that asking himself "What would my life be like without swimming" was "a very dark question for me".

Thorpe said he made the decision on Sunday shortly after deciding he would not compete at next year's world championships in Melbourne.

"As of 2.53 on Sunday afternoon I decided I would not be swimming the world championships,'' Thorpe said.

"I also made a very difficult decision that day that I am actually going to discontine my professional swimming career. "

He he called the press conference today, sparking renewed rumours he would step down.

Last night Australian swim team coach Allan Thompson said he was prepared for life without Thorpe.

"I don't think he would have called the press conference unless he was going to step down," Thompson said.

As Thorpe prepared for the tough decision, Australia's leading anti-doping authority drug tested him at his Sydney home yesterday.

Two officials from the Australian Sports Anti-Doping Authority turned up at the Olympic champion's Dolan Bay home about 10am and took samples.

Meanwhile, a spokesman for Thorpe's management group said his sponsorship deals and business ventures would survive even if he never swam again.

"He has just been talking to friends, family and his coach and deciding on what the best thing for him is to do," a Grand Slam International spokesman said.

"Most of his relationships are long term and no matter what happens he has some strong relationships in place and has never let them down. No matter what, he won't go for want."

Shane Gould, whose partner is Thorpe's US mentor Milt Nelms, spent three weeks with Thorpe during his winter sojourn in Los Angeles.

The former teen star said yesterday she believed Thorpe's issues regarding his future went beyond the pool.

"I think that it's not just the swimming," she said. "He loves the swimming and I saw that in LA.

"For three or four months it looked like he was on his way back.

"But then he got back to Sydney and I think he realised that the unresolved stuff was still there."

Japan has scored a gigantic racing double as Delta Blues and Pop Rock produced a scintillating finish to place first and second in the 2006 Melbourne Cup.

Trainer Katsuhiko Sumii, in charge of both horses, was the toast of Melbourne as his pair made it a two-horse race while Maybe Better finished third.

Delta Blues, ridden by Japanese rider Yasunari Iwata and carrying 56 kilograms, paid $18 in NSW for the upset win while Pop Rock paid $2.60 for a place and Maybe Better $3.20.

Iwata was competing in Australia for the first time, and had not even seen the Flemington track before today.

The last horse in was Zabeat.

It is only the ninth time one trainer has had two horses feature in the quinella in the Melbourne Cup.

An ecstatic Iwata, who praised the atmosphere at Flemington, exclaimed: "Very happy, very happy ... biggest win ever.''

Pop Rock's rider Damien Oliver added: "I've got so much admiration for the Japanese horses. I thought I was going to pick him up."

The two Japanese horses take the first prize of $3 million and second prize of $750,000.

It was the first Cup success by a Japanese raider.

Sumii said through an interpreter: "We would like to say thanks to this country Australia to give us two kinds of chance to be a winner of this very, very big race.

"And this result was greatly supported by the Racing Victoria Club and by the people."

Delta Blues enjoyed the run of the race in second and third place throughout as Zabeat set the pace with Irish topweight Yeats moving up to challenge on the turn.

Yeats momentarily hit the front but Delta Blues soon raced past him and then held off the determined challenge of Pop Rock who tried valiantly but just missed.

Before the race at 3pm, Tawqeet was listed as the $5.30 favourite in NSW and $5.40 favourite in Victoria, Pop Rock was at $7.40 in NSW but had dropped remarkably to $6 in Victoria, while Yeats moved back out to $7.60 and $7.40 in the two states.