Building trust

Julia Gillard became the first woman to be elected Australian prime minister on Thursday after Kevin Rudd stepped down as Labor Party leader.

The change was widely anticipated after a series of policy lapses caused Rudd's ratings to plunge.

The Labor Party, with Gillard at its helm, expects the leadership change to refurbish its standing before elections due within months. But to lure voters, her government needs to tackle complicated issues such as health, education and climate change, head on.