Steve Bracks resigns as Premier

Victorian Deputy Premier John Thwaites has announced his resignation from politics, in the wake of this morning's shock resignation of leader Steve Bracks.

Mr Bracks told a press conference at Melbourne's Treasury Place he would stand down - not just as Premier but also from politics.

Mr Bracks told reporters: "I have just left a meeting with my cabinet ministers where I informed them that I intend to resign as Premier, as leader of the parliamentary Labor Party, also as the member for Williamstown.

"The circumstances are right, the time is right for a new leader," he said.

"It's right for state, it's right for Government and right for the Labor Party."

Mr Bracks said it was a "very emotional time". When asked if there were tears in cabinet, he replied "yes".

"It was a very emotional time in cabinet this morning. Obviously they were shocked and stunned and understood that the decision was good for me.

"Once you reach the point where you can no longer give (total) commitment that choice (to leave) is clear," he said of his decision.

Mr Bracks said Labor leader Kevin Rudd had asked if he couldn't be dissuaded from stepping down.

"I talked to Kevin Rudd this morning and informed him that I was stepping down. He asked if he could talk me out of it," Mr Bracks said.

"(I said) 'no, I won't be standing for office federally'."

'No regrets'

Mr Bracks said he had no regrets about his career.

"I believe in some ways I've been able to change two parties: Labor and the Opposition," he said.

"I just don't have any regrets," he said.

"It's been a brilliant part of my life. I just love this job. But I knew I had to make a decision... and it's the right decision to make."

He said he had given "everything" to the job.

"I have given everything, body and soul to this job. I love what we achieved. I couldn't have given any more than I have given over the past eight years to this state."

Mr Bracks then confirmed that family reasons were a part of his decision.

His son Nick was in the news earlier this month after he was involved in a car crash near their Williamstown home while allegedly driving drunk.

"The events of the last couple of weeks meant that I made that decision at an early juncture," he said.

'I love Victoria'

While Mr Bracks gave no indication of his plan for the immediate future, he said he "has a lot of contributions to make publicly".

He said he would liked to be remembered as the person who "put the heart back in Victoria".

"I've been in this for a long time and I think I've got a lot of contributions to make publicly, in Victoria," he said.

"I love Victoria, I can tell you that. Most of you think I'm pretty young, but I've actually been standing for office for 22 years," he said.

Brumby 'best Treasurer'

Treasurer John Brumby is the early front-runner for the position.

Mr Bracks said that Mr Thwaites had been a "great source of strength" but saved his greatest compliments for John Brumby.

"John Brumby has been the architect of Victoria's economic success and establishing labor as responsible for the state's finances," Mr Bracks said.

"He's the best Treasurer Victoria has ever had," he said.

Mr Bracks said his kids were surprised by his decision but "they always knew their dad would be back to them".

When asked how his wife, Terry, felt about her husband's decision, Mr Bracks invited her to address reporters herself.

Mrs Bracks said the media spotlight on her family while her husband was Premier had been like living in a fishbowl said it was a "sad reflection" on public life when events involving her children were played out in the media.

Mr Bracks then thanked his staff, Labor party officials and Victoria's public servants, who he described as the "highest quality".

The Premier even thanked the media, saying he respected the role journalists play.

He described the state politics reporters as "among most professional in country".

'Thank you, Victoria'

Asked as he was leaving if he would enjoy seeing his statue outside Treasury Place, Mr Bracks replied: "That won't happen."

By way of conclusion, Mr Bracks thanked the entire state.

"Thank you, Victoria for giving me the privilege to serve this great state. It's a great state," he said.

Mr Bracks, 52, was elected to the Victorian Parliament in a byelection in Williamstown in 1994.

He become Labor leader in March 1999 and premier in October of that year after toppling Jeff Kennett in a shock election result.

He was re-elected twice in 2002 and 2006 and served nearly eight years as premier.

Mr Bracks was born in Ballarat in 1954 and educated at St Patrick's College, Ballarat, and later Ballarat University.

Before entering state politics, Mr Bracks worked as a teacher in Ballarat. 

He taught from 1976 to 1981 and later worked as executive director of the Ballarat Education Centre.

Mr Bracks is married to Terry and has three children, Nick, Amy and Will.