Julia Gillard was on Tuesday sworn in as Australia's first elected woman Prime Minister, who will be at the helm of a fragile coalition government after her ruling Labor lost majority in 21st August polls following the ouster of her predecessor in a party revolt.
"I, Julia Eileen Gillard, do solemnly and sincerely affirm and declare that I will loyally serve the Commonwealth of Australia in the office of Prime Minister," 48-year-old Gillard said during the swearing in ceremony in the Australian capital, Canberra.
She was joined at the ceremony by her partner Tim Mathieson and some of her frontbench colleagues, including Treasurer Wayne Swan and his wife Kim.
Gillard, who was sworn in for the second time for the top post in less than three months after she deposed Rudd in June, signed a document and swore allegiance to Queen Elizabeth II.
Rudd's sudden and spectacular downfall made him the first Labor prime minister to be dumped from office before completing a first term.
Voters had lost faith in him after a series of bungles and backflips, including the shelving of the emissions trading scheme.
However, on Tuesday Gillard was sworn in as the first elected woman Prime Minister following the 21st August cliffhanger polls in which her party failed to secure simple majority in 150-member House of Representatives resulting in the first hung Parliament since 1943.
She has managed to retain power with the support of Greens and independent MP's.
Gillard's Cabinet includes Rudd, who is the new Foreign Minister, her deputy and Treasurer Wayne Swan and former pop star Peter Garrett, who switches from environment to education.
Former Foreign Minister Stephen Smith will now be the Defence Minister.
There are 19 Cabinet ministers, 10 ministers and 12 Parliamentary Secretaries in the new government.