Country MP Sussan Ley has created history becoming the first woman to lead the Liberal Party and the first bush politician to win her party’s honour since Malcom Fraser, a former prime minister in the 1980's.

Sussan Ley beat conservative rival Angus Taylor 29 votes to 25 to become the first woman to lead the federal party in its 80-year history.

The 63-year-old former deputy leader was expected to be joined by Jacinta Price but she dropped out of the race for deputy after defecting from the Nationals.

Ted O’Brien was voted deputy 38-16.

Ley said ‘’My election as leader of the Liberal Party sends a signal things have to be done differently.’’

Sussan was elected to the Riverina seat of Farrer in 2001.

She currently resides in Albury NSW and serves an electorate "roughly the same size as New Zealand".

Ms Ley had a diverse work background before entering Federal Parliament.

She holds a Commercial Pilot's License and worked as an air traffic controller in Sydney and Melbourne, as well as an aerial musterer in outback New South Wales and Queensland.

Before taking up the farming life, Ms Ley worked as a travelling shearers' cook.

She took up university study part-time while raising her three children and eventually completed three finance degrees.

At the time of the announcement Labor ministers were being sworn in at Government House after their landslide win.