Embattled Victorian premier falls on sword
In the shock announcement following the resignation of government MP Geoff Shaw, Baillieu confirmed Denis Napthine as the new leader and he had every intention of remaining in parliament, Xinhua reported.
Amid increasing concern over his role in the police tapes crisis that led to Baillieu being forced to refer his own chief of staff to an anti-corruption committee earlier this week, the premier conceded his position as untenable.
"It is apparent to me that a change of leadership is in the best interests of the government," Baillieu said in a prepared statement.
"I want to thank the people of Victoria. I wish Denis Napthine the best. He has my full support. He's an outstanding individual."
Baillieu visited the governor general to tender his resignation Wednesday evening.
Political observers said the writing was on the wall for Baillieu who has been Victorian premier for little more than two years.
With Victorian Parliament in disarray, Labor leader Daniel Andrews said it was clear the government was in crisis.
"He is not so much running a government -- he is running a complete and utter circus," Andrews said earlier this week.
Baillieu became premier of Victoria in 2010 after defeating the long-serving Labor government led by John Brumby with a slim margin.
He was first elected Member for Hawthorn in 1999, and had served as leader of the opposition for four years before assuming power.
The federal government led by Prime Minister Julia Gillard will go to the polls later this year.