Ms Ley was ousted by Angus Taylor this morning by 34 votes to 17.
Senator Jane Hume has been elected deputy leader.
Ms Ley was the elected as the first female leader of the Liberal Party of Australia after the party’s disastrous defeat in the 2025 Federal election.
She has announced her intention to quit parliament and pursue a life out of the public eye.
She told reporters it was important the new leader had “clear air” to steer the Liberal ship and plans to spend the time in the electorate to thank her constituents for their support.
"I am not sure what comes next for me,” Ms Ley said.
“I look forward to stepping away, completely and comprehensively, from public life."
She plans to spend time with family, and with her passion for aviation.
State Member for Albury, Justin Clancey has acknowledged Ms Ley’s long service to the region and to the people of Farrer, including the Federation Council area..
“Communities like Corowa, Mulwala and Urana know Sussan well; she has been a familiar and significant representative for many years,” Mr Clancy said.
“Her resignation marks the end of a major chapter for our region, and I want to thank her for the work she has done advocating for local communities along the Murray.
“Politics can be tough, but regional representation matters deeply, and Sussan has been an important voice for border communities.
“I wish Sussan and her family all the very best for the next chapter.
“And as our region looks ahead, it’s important we ensure communities like Corowa, Mulwala and Urana continue to have a strong voice at the national table.”
Chief Executive Women (CEW) congratulated Mr Taylor on his win but expressed its disappointment in the manner in which Ms Ley was ousted from her role after just nine months.
CEO Lisa Annese said that over the past two election cycles, the Liberal Party's vote among women had seen a steady decline.
“This hasn't occurred in a vacuum," Ms Annese said.
“In the previous term of government, the Liberal Party unanimously voted against several key reforms that have improved the lives of women across Australia and strengthened the economy by boosting workforce participation and national productivity.”
In opposition over the last term, the Liberal Party voted against the expansion of childcare provision, against extending paid parental leave, against superannuation provisions on paid parental leave, and against pay increases for workers in feminised industries, including early childhood education and aged care.
"These votes have sent a message to women about how the Liberal Party aims to address issues that impact their lives,” Ms Annese said.
"The other meaningful way in which parties signal their commitment to women is through how they treat women within their own ranks.”