Nathan Rees has just been sworn in as NSW Premier at Government House.
With Governor Marie Bashir overseas, the Lieutenant Governor James Spiegelman has carried out formalities.
Inside, Mr Rees has recommended that the Lieutenant Governor, for the purpose of the restructure of the ministry, accepts the resignation of Morris Iemma, and that Mr Rees is appointed premier. He asked the same for his new deputy, Carmel Tebbutt.
Papers have just been signed and the affirmation of Nathan Rees as Premier, and Ms Tebbutt as deputy is now complete.
Mr Rees goes from here to Governor Macquarie Tower for his first official news conference as leader of the state.
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Toongabbie MP and former garbage man Nathan Rees has become NSW’s new premier.
Mr Rees emerged from a full caucus meeting at around 1:30pm, making announcement to dozens of waiting reporters.
"As you all know Morris Iemma resigned as premier today, I nominated for the vacancy and I was elected unanimously by the full Labor caucus," he said.
"In addition to that, Carmel Tebbutt has the full support of the caucus for the deputy premier position."
His new deputy, Carmel Tebbutt was endorsed yesterday, after Wednesday’s resignation of John Watkins.
Applause rang out from the partyroom before Morris Iemma walked out with Mr Watkins, having just officially resigned to caucus.
Another burst of applause was kept for Mr Rees, who is expected to be sworn in this afternoon.
Emerging from the meeting, Blue Mountains MP, Phil Koperberg says the change will allow the party to move forward, united.
“I want to acknowledge the wonderful work that Morris has done, as a compassionate and decent man,” he said.
The new frontbench is not expected to be announced until next week.
Earlier today Mr Iemma stormed out of a right-faction meeting in Parliament after learning he had lost the support of the powerful Labor right faction.
Mr Rees was only elected to the NSW Parliament last year.
He's a member of the minority Left faction which he would have to quit if he was to take up the role.
It’s been a tumultuous 72 hours for Mr Iemma, after he was forced into a cabinet reshuffle following the resignation of his deputy John Watkins on Wednesday.
But it was his own head that has ultimately been put on the chopping block.
Meantime, Michael Costa is yet to announce his intentions for the future after being dumped as Treasurer in Mr Iemma's reshuffle plans.
The make-up of the new front bench has been turned upside down after this morning's developments.
Mr Costa has revealed the health budget has blown out by $300 million so far this financial year, putting the North-West Metro project into doubt.
But he insists Morris Iemma's Government is not to blame for the economic position of the state.
“Let’s make it clear: These problems are cumulative problems over 12 years,” he said.
“These are not problems that the Iemma Government is responsible for. The structural reform I’m talking about had to be done over a 12 year period. A lot of it is legacy.”
LIVENEWS.com.au will bring you video from outside the caucus meeting soon.
More to come...