By political correspondent Simon Cullen
Video: Albanese throws hat in ring for Labor leadership
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Anthony Albanese has decided to contest the Labor leadership, declaring himself to be the best candidate to lead the party back into government.
The ALP will have a month-long leadership contest between Mr Albanese and Bill Shorten, who confirmed yesterday he would run for the position.
Mr Albanese says he made the decision last night after speaking with his family, and confirmed it to caucus colleagues earlier today.
"I'm standing for the Labor leadership because I firmly believe that I'm the best candidate to lead Labor back into government at the next election," the former deputy prime minister told reporters after the meeting.
"I'm standing because I have the policy credentials developed over a long period of time.
"I'm standing because, as a senior minister in the government for six years, I looked after infrastructure, transport, regional development, local government, broadband, communications and the digital economy.
"I did a good sound job in implementation of all of our policies in those areas. I think I'm up to a hard job.
"My record shows that I have an ability to work with people - both across the Labor Party, but also across the parliament, in the community, and with the business sector."
Labor to begin process of becoming 'more transparent'
During the vote process, former treasurer Chris Bowen will be acting Labor leader.
Other frontbench roles will remain unchanged until the new leadership team is in place, apart from the appointment of Richard Marles as Labor's acting defence spokesman.
Mr Bowen says the party now has the choice between two very good candidates, both of whom have a vision for the future.
"Today the Labor Party begins the process of becoming a bigger, more transparent, more open, more democratic party," Mr Bowen told reporters in Canberra.
Shorten v Albanese
The leadership contest between Bill Shorten (pictured) and Anthony Albanese essentially pits union power against rank-and-file party members.
Take a look back at the political careers of both men, and read about how the voting process works."The Labor Party is big enough and mature enough to conduct this process in a way which shows the Australian people that we will be ready for government whenever we're called upon next.
"I'll certainly be working over the next month to ensure that Tony Abbott and his government are held to account and they're not able to get away with great breaches of promises or with bad policy while I'm interim leader."
Mr Bowen says he has spoken with both Mr Albanese and Mr Shorten separately about how the ballot should be conducted.
"Both candidates indicated that they wanted this campaign to be based on policy, on ideas and on the future," he said.
"They both indicated if any of their supporters launched any personal attacks on the other candidate, then they would be dealing with that.
"They would be dealing with that in a way which would ensure that the process is conducted maturely and in a spirit of goodwill."
Mr Shorten, a former education minister, argued his optimism and enthusiasm would help make Labor a viable force at the next election.
At today's caucus meeting, Mr Shorten described himself as a "campaigner" and a "builder" in making his pitch for his colleagues' support.
"I can bring people on side," he said.
"Our party must be rebuilt from the bottom up.
"I want to help renew our relationship with the union movement - a relationship fundamental to our future. Labor must be a modern, open and inclusive party.
"The essential task is to unify the party and to unify our purpose - understanding our weaknesses, but building on our strengths.
"We can win the battle of ideas. We can win the next election."
Mr Shorten yesterday indicated that Tanya Plibersek would be his deputy.
However, if Mr Albanese wins the ballot, it is unlikely she would take on the role given they are both from Sydney and both from the left faction.
Labor's rank and file to vote first
Under the new caucus rules, nominations for the leadership will remain open for a week.
There will then be a ballot of party members around the country, as well as a vote within the parliamentary Labor caucus.
Both decisions will be given equal weighting in determining a final outcome.
Mr Bowen says party members will vote first, but the caucus will not know that result when MPs and Senators cast their ballots.
Former prime minister Kevin Rudd addressed today's caucus meeting, thanking colleagues for their support during his time as leader.
He took responsibility for the election result, but said the party had preserved the next generation of young Labor leaders.
According to Mr Bowen, Mr Rudd took responsibility for the election result, but also pointed to the many MPs who were able to hold on to their seat despite the dire predictions.
Despite public criticism of the new caucus rules to elect a new leader, Mr Rudd has defended the changes, saying rank-and-file members are excited to have their say on who should lead the party.
"I believe it is within our wit and wisdom to manage this for just 30 days, particularly given the enormous opportunity it provides for the first time for our rank and file to have their say," he told the caucus meeting.
Mr Rudd also acknowledged the public "character analysis" some colleagues had made of him since the weekend election loss.
"I have not responded because I do not believe this is in the best interests of our party and our future," he said.
"And to those who have made these criticisms, I bear none of you any malice and instead hope for your and our collective success in the future."
