The former Liberal deputy under Peter Dutton defeated former shadow treasurer Angus Taylor 29 votes to 25 in a partyroom ballot of 54 members on Tuesday in Canberra.
The writing appeared to be on the wall for Mr Taylor when he tried to enter the party room through a locked door before having to detour ahead of the vote by MPs and senators.
Outgoing West Australian Liberal senator Linda Reynolds told reporters as she left the meeting that the party had gotten the message from voters and acted.
"Australians spoke clearly and we listened," Senator Reynolds said, acknowledging that the party had lost the support of many female voters at the May 3 election.Â
West Australian Senator Dean Smith said Ms Ley's leadership was a "new beginning" while Queensland MP Andrew Wallace said the party had to demonstrate it was listening and learning.
"One thing the Australian people will not cop is a disunified opposition, and we need to now unite and rebuild," he told reporters after the vote.
"Sussan is a woman with 24 years' experience in this place and ... nothing beats experience in this place, you know where all the bodies are buried, you know the tactics."
The Liberal leadership will need to contend with the Nationals as they work out the finer details of a new coalition agreement, especially after Nationals leader David Littleproud flagged that party's commitment to a net-zero emissions target was up for review.
The climate policy clash risks opening up a schism within the coalition, with moderates angry that the party didn't do enough on the issue and caused it to bleed voters in metropolitan seats.
The coalition holds 42 of 150 lower house seats, less than half of Labor's 93, which has all but confirmed they'll face at least three terms in opposition after losing power in 2022.
Of three seats yet to be called, the Liberals are ahead in two and Labor one, meaning there's a chance of a slight improvement in the tally, but the coalition faces a Herculean task to win government in three years regardless.
Ted O'Brien has been elected deputy leader despite fanfare about Senator Jacinta Nampijinpa Price running as Mr Taylor's second-in-command after jumping to the Liberal party room from the Nationals.
The deputy ballot came down to Queenslanders Phil Thompson and Mr O'Brien, after Senator Price pulled out.
The former energy spokesman, who spearheaded the coalition's energy policy, won 38 votes to 16.
Senator Price arrived at her first Liberal partyroom meeting flanked by conservative senators Michaelia Cash, Jonno Duniam and Claire Chandler.
Her defection from the National Party to run as deputy angered former colleagues and some moderate Liberals who disagreed that her style of politics would be a vote winner in the inner cities.
There is no reason to assume whoever takes the job won't last until the next election, and the absence of a deep bench could bode well for them, Australian National University politics lecturer Jill Sheppard said.
But leading the coalition when it holds less than half as many seats as Labor is a tough ask, and there is a reason other contenders such as Dan Tehan and Andrew Hastie were quick to rule themselves out.
"It does feel like a bit of a poisoned chalice," Dr Sheppard told AAP.
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