It followed days of speculation and confusion over whether now former leader Malcolm Turnbull could maintain his grip on the premiership in the face of a conservative uprising.
"It has been a challenging time to be prime minister, but I am very proud of our record of achievements", Turnbull said after he was removed.
It was the seventh prime minister in 11 years in a remarkable revolving door at Canberra's parliament house.
New Australian Prime Minister Scott Morrison said on Saturday he had spoken with President Donald Trump and been congratulated by the US leader, who got off to a famously rocky start with former premier Malcolm Turnbull.
She said Mr Morrison's close ties with New Zealand will be helpful as they build their relationship.
She said Morrison acknowledged his warmth for New Zealand and that her government would keep advocating for New Zealand in the bilateral relationship.
To which the minister claimed the Liberal party is there for the Australian people and ready to address the issues that matter the most, still tactfully dodging the host's main question.
"I think the whole idea of the Liberal Party moving too far to the left is, frankly, fanciful", Mr Wilson told the ABC. The names would prove a majority of his government had abandoned him.
"We intend to be governing ... so I don't think anybody should be making any plans for any elections any time soon", Morrison said.
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But the man who took him down didn't seize the prime ministerial crown.
Even Chinese state media appeared to be exhausted of the ever-changing state of politics - one user shared this headline from China Daily reading "Australia changes its prime minister again, again, again, again, again".
The electoral office of Liberal Party leadership challenger Peter Dutton was severely vandalised overnight, Queensland Police report.
The bare minimum majority of 43 signatures were provided shortly before the meeting started.
The Liberal leadership is shaping up to be a threeway contest with Julie Bishop poised to make a run for the top job.
Party members voted 45-40 in favor of Morrison over Peter Dutton, a former Cabinet minister who mounted an unsuccessful challenge against Turnbull's leadership earlier this week.
Hitherto infuriating, inexplicable and ridiculous, the Liberal leadership crisis last night turned sordid, absurd and pathetic as one of the two major institutions of Australian politics fought with itself openly and utterly incompetently. Several other Liberal Party lawmakers have also resigned in protest over Turnbull's premiership, including Finance Minister Mathias Cormann.
Dutton's supporters had forced incumbent Turnbull to hold the leadership ballot.