A confident Malcolm Turnbull has signalled a full frontal assault against Labor as he takes over the Liberal leadership, vowing the coalition can win the next election.
The member for Wentworth, who entered parliament in 2004, became opposition leader after winning a Liberal party room ballot 45-41 against incumbent Brendan Nelson.
After months of speculation over Dr Nelson's leadership, Mr Turnbull promised the Liberals going forward would be a "cohesive and united" team.
Last year he lost the ballot against Dr Nelson by 42 votes to 45.
A successful millionaire businessman before entering politics, Mr Turnbull said it was "humbling" to be elected to the party leadership.
He foreshadowed a Liberal party which would focus on traditional values, such as opportunity and enterprise, under his command.
"Ours is a great party, a party whose values are as important to the prosperity and security of Australia in the years to come as they have been in years gone by," he said.
"This is a land of opportunity. Australia and Australians can do anything.
"But we need to have confidence, we need to have leadership, we need to have the opportunity to do well."
Under his leadership, the Liberal party would strive to give Australians the tools to make the most of opportunities.
"We believe that government's role is to enable each and every Australian to do their best," he said.
"Labor believes government knows best. We are not so vain as Mr (Kevin) Rudd."
He will consult with colleagues over the make up of his new ministry but there will be one absentee - Dr Nelson, who will move to the backbench.
Mr Turnbull paid tribute to Dr Nelson, to whom he offered a frontbench role.
"Brendan has led the party through very difficult times ... he's done that very well and we owe him all a great debt of gratitude and I honour him today," he said.
Julie Bishop will remain Liberal deputy leader - her position was not challenged during the party room meeting.
Mr Turnbull indicated there would be no radical policy shifts as a result of the leadership change.
He committed the party to retaining the coalition policies on a five cent reduction in the fuel excise, as well as its plan to oppose a raft of government policies in the Senate, including changes to the Medicare levy surcharge threshold.
"We have not changed any of our positions in the Senate," he said.
Mr Turnbull pledged to hold the government to account on critical issues like climate change and an emissions trading scheme.
"We will hold Kevin Rudd to account on his climate change policies and we will go to the next election with (an informed) climate change policy," he said.
"Kevin Rudd is rushing in an emissions trading scheme for purely political grounds."
The opposition supported a "properly designed" emissions trading scheme introduced by 2012 at the latest, Mr Turnbull said.
"We have not changed that policy but we will be reviewing all of our policies in the light of our policy development work ... and in the light of political and other events," he said.
The former merchant banker and well-known republican went to great lengths to indicate his leadership of the party would be a team effort.
The new opposition leader has long been perceived as a bit of a lone-wolf and not a team player.
He put many offside before the last leadership ballot by unilaterally promoting new policies without consulting the party.
Despite the close 45-41 vote, Mr Turnbull said he was confident he had the support of the entire party.
"I believe that no individual has the sum total of human knowledge, Mr Rudd of course takes a different view, he's got a one-man government," he said.
"I've learnt over the years that you cannot achieve anything working by yourself, you can't achieve anything as a sole operator.
"I'm a great believer in communication and consultation."
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