Howard, who reshaped Australia's image abroad with his unwavering support for the US war on terrorism and in Iraq, failed to read the signs that voters had grown tired of his rule.
"The Australian people have decided that we as a nation will move forward," Rudd said in a victory speech late Saturday. "To embrace the future and together as Australians to unite and write a new page in our nation's history."
With 75 percent of the more than 13.5 million ballots counted, Labor had won more than 53 percent of the vote and a clear majority of at least 83 places in Parliament's 150-seat lower house, official Australian Electoral Commission results showed.
Howard's Liberal-National coalition had 46.6 percent of the vote, and 47 parliamentary seats. Howard's district of Bennelong hung in the balance, with the final outcome to be decided by postal votes to be counted in the next few days.
