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Dominic Perrottet will succeed Gladys Berejiklian as NSW premier after winning a Liberal party room vote.
Government Whip Adam Crouch said the 39-year-old from the party's right faction beat Planning Minister and moderate Rob Stokes in the ballot at NSW Parliament on Tuesday.
It's believed there were be 39 votes for the treasurer against five for Mr Stokes.
The devout Catholic and father-of-six will become the 46th person to be NSW premier and the youngest ever to take on the state's top job.
Long touted as the premier-in-waiting, Mr Perrottet struck a deal with his moderate colleagues to make Jobs Minister Stuart Ayres his deputy and promote Environment Minister Matt Kean to treasurer.
Ms Berejiklian quit on Friday after the state's corruption watchdog disclosed she was being investigated for potential breaches of public trust during her secret five-year relationship with former Wagga Wagga MP Daryl Maguire.
Mr Stokes, 47, offered himself as a more experienced alternative to Mr Perrottet, with the MP for Pittwater on Sydney's northern beaches, arguing he was the party's best shot at winning the 2023 election.
But Mr Perrottet, who's Epping electorate is in Sydney's northwest, played up his credentials working alongside Ms Berejiklian as deputy leader.
Perrottet vows to carry on Gladys legacy, hints at agenda
Speaking to reporters on Tuesday, Mr Perrottet said he will look to pick up where his predecessor left off, but said he will not shy away from "tough reforms" including on housing affordability and the GST tax.
“There is no doubt there will be a refresher and a renewal, and that is a positive thing. It is a very positive thing but this has been a team effort.
“Throughout the pandemic, the last 18 months, there have been ministers of the cabinet, the Crisis Cabinet, that have worked very closely and that is testament to former premier Gladys Berejiklian,” he said.
“I believe that this team will be united, strong and continue that track record, that legacy of Gladys Berejiklian,” he said.
Mr Perrottet indicated he will look at tackling tax reform including the GST and cited housing affordability in the state as a key issue for the father of six.
"A real focus will be housing affordability. We are facing a challenge when it comes to generational equity where many young people today cannot get the keys to their very first home, and we have a duty to ensure that generations that come after us have greater opportunity and prosperity than we have," he said.
PM ready to work with new NSW premier
Prime Minister Scott Morrison said he had worked with Mr Perrottet on the NSW economy as they dealt with "the very difficult challenges we have had with Covid".
"When we disagree, we disagree. The next day we get back to work. That is how normal people get on with each other when they know each other well. And we do," he told Seven's Sunrise program on Tuesday.
Meanwhile, the NSW Nationals are preparing for their own leadership contest.
The NSW government will have an entirely fresh leadership team by Wednesday, after Deputy Premier and Nationals leader John Barilaro announced he too would quit parliament.
Paul Toole and Adam Marshall are expected to join Melinda Pavey in a three-way race to fill his position.
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