Australia could have a new leader, after Julia Gillard announced during Question Time that an ALP leadership ballot would be held at 4.30pm .

Mr Cobb said it seemed unlikely that Ms Gillard would retain the leadership.

“It’s hard to imagine them coming out from the ballot this afternoon with the same leadership," he said.

“I think Gillard’s leadership will be damaged either way, this has gone so far that something will have to change.”

Mr Cobb said it was hard to believe Labor was willing to give the leadership back to Kevin Rudd.

“They got rid of him before, he was incredibly unpopular and got thrown out because of it, how can they get behind him now when they were so scathing of him before?"

ALP candidate for the seat of Calare Jess Jennings said the ballot was about finding the best person for the job.

“Going back to a leader who has already been Prime Minister does not mean Labor is an unstable party, but that there is a wealth of talented people and we have to find the right person for the job at hand," he said.

Dr Jennings said while he was eagerly awaiting the results of the ballot, he would support either Mr Rudd and Ms Gillard one hundred per cent.

“I’ve said it before that I would gladly support either leader, as both have their relative merits,” he said.

“Kevin Rudd has an excellent policy mind, while Gillard is a great negotiator and I don’t think that has been recognised.”

Dr Jennings said either leader would be a better alternative to the backwards thinking of the coalition government.

LIVE: Labor leadership showdown set for 4.30pm