Ley, the moderate candidate who was deputy under Peter Dutton for the last three years, narrowly saw off conservative shadow treasurer Taylor 29 votes to 25 in this morning’s party room meeting.

“We have to have a Liberal Party that respects modern Australia, that reflects modern Australia, and that represents modern Australia,” Ley said following her victory.

“And we have to meet the people where they are. And that’s what I am committed to doing and what I am determined to do.

“I want to do things differently, and we have to have a fresh approach.”

Ley will become not just the first woman to lead the Liberals, but also the first to be federal opposition leader – from either party – in Australian history.

Ted O’Brien, one of the most strident supporters of the Coalition’s nuclear plan in his former role as shadow energy spokesperson, was elected her deputy.

He defeated surprise candidate Phil Thompson 38 votes to 16.

Jacinta Nampijinpa Price, who had made a controversial defection from the Nationals to the Liberal Party late last week to stand for the deputy leadership under Taylor, didn’t officially nominate for the deputy position after Taylor had been defeated.

Price later said Taylor’s defeat was the reason she didn’t contest the position.

She congratulated Ley on her election and said she would work with her and O’Brien, but also admitted the decision wasn’t what she wanted.

“While I am disappointed Angus Taylor was not elected leader, I respect the decision made by my colleagues within the party room today,” Price said.

Taylor congratulated Ley on her election, saying “becoming the first woman to lead the Liberal Party is a milestone for Sussan and our party”, before making a call for unity.

“The Liberal Party has suffered a historic defeat, and we have lost many good people in this election,” he said.

“This result shows we must do more to convince Australians that the Coalition is the best party to support aspiration, economic opportunity, and the Australian dream… I will contribute the best way I can to help get us back in the fight.”

Ley, in turn, praised Taylor as “an intelligent, talented contributor to so many ideas” and promised him an “integral” role in the opposition. 

Questions loom over Coalition, energy policy, and winning women back

Ley inherits a Liberal Party reeling from a catastrophic election loss that will likely see the Coalition reduced to just 44 seats, and grappling with what direction to take on economic policy, how to re-engage women voters, and whether to retain its nuclear power advocacy.

Asked about energy policy, Ley said the party would take time to determine its approach but added she “absolutely” agreed with the need for Australia to reduce emissions.

“I committed to my colleagues that there would be no captain’s calls by me,” she said.

“I also committed… that we would work through every single policy issue and canvas the different views and take the time to get it right… we have to get energy policy as a whole right.”

She signalled a departure from predecessor Peter Dutton on a number of fronts, including by committing to regularly front the press gallery media and saying she was happy to stand in front of the Indigenous flag.

Ley also said she wanted to “start with a positive relationship” with Prime Minister Anthony Albanese, and flagged an intention to reconnect with female voters.

“I said in my statement for candidacy in this position that we did let women down,” she said.

“There is no doubt about that. It is true the number of women supporting us is declining and I want to rule the line under that.

“I don’t want to see that claim for one more day.

“That means a genuine, serious engagement with the new leadership team and a new agenda – and one I will personally drive.”

On top of those concerns, Ley will face discussions about the Coalition’s future.

David Littleproud didn’t commit to renewing the agreement between the two parties yesterday after he saw off a challenge from Senator Matt Canavan to retain the Nationals leadership.

“We’re going to review all our policies and we’ll do that in a calm, methodical way,” he said.

Asked about the future of the partnership between the Liberals and Nationals, Ley said she was a supporter of a strong Coalition and was expecting to have a positive discussion with Littleproud.

“I’m yet to have a conversation with David Littleproud, but when I do it will be a constructive one.”

Ley said she would announce her shadow cabinet later, but that it would include MPs and senators who both supported her and voted against her.