Julia Gillard “did the right thing” in retiring from federal politics, South Australian Senator Don Farrell says.

Reflecting on the dramatic events in Canberra yesterday, Farrell told InDaily the mood in the ousted PM’s office was one of relief and that Kevin Rudd was a changed man, ahead of an election on August 24.

“Had Julia stayed after the switch last night, the leadership issue would still not have been resolved,” Farrell said.

“One or two bad polls for Rudd and the speculation would have started again. I think she took a brave decision – and made the call that the loser should retire. She did the right thing.”

Farrell said that while it was his Right faction that had delivered the knock-out blow to Kevin Rudd three years ago, it was that faction that returned job to him, albeit without the Farrell imprimatur.

“My faction was the one that backed him in.

“As for me, I had decided earlier that I was sticking with Julia and I believed that it was the right thing to do.

“Whether that diminishes my power; that is for others to judge.

“The reality is that the leadership speculation was killing us.

“Division is death in politics.”

Has Kevin Rudd changed since his colleagues rejected his style in 2010? Farrell thinks so.

While Farrell was contemplating whether to resign his position as Minister for Science and research, Kevin Rudd called.

“Last night he called me and asked if I’d stay on; that’s quite a significant change for a start,” Farrell said.

“At the Caucus meeting earlier, he said that he would be a more inclusive Prime Minister. I guess the last three years he’s been able to reflect on life.”

Farrell spent some time with the former Prime Minister and her staff after the vote.

“She got a really big cheer from her staff, who all admire her and love her. There were no tears and that set the standard.

“There was a feeling of relief. The speculation had been killing us, and she felt it more than anyone. So yes, it was a sense of relief.”

Farrell said attention would now turn to the election.

“It’s time to present a united face; we’re eight weeks away from an election.”