The ailing Nationals are looking for a new federal leader after an emotional Mark Vaile quit the top job in the wake of his party's poor election result.
The outgoing deputy prime minister said he accepted some responsibility for the coalition's crushing defeat, but insisted the Nationals will "kick on again".
Standing with his wife Wendy, Mr Vaile choked back tears when he talked about the toll his parliamentary career had taken on his family.
"It's been a long 10 or 11 years for my family whilst I've been away from home and they deserve a bit of time and that's what I want to give them," said the father of three, holding back tears.
Mr Vaile's resignation took colleagues by surprise and came less than 24 hours after outgoing treasurer Peter Costello announced he would not run for the Liberal Party leadership.
Like Mr Costello, Mr Vaile, 51, did not endorse a possible successor and said it was time for a generational change in leadership.
"We are at a point in the history of politics in Australia where I believe it is time for an opportunity for a bit of a change in the leadership of our party," he said.
Possible leadership contenders include Warren Truss, Peter McGauran and Luke Hartsuyker.
The Nationals had hoped to win 13 or 14 seats in parliament but look to have held on to just 10 - down from 18 in 1996.
The Nationals could not hold the NSW north coast electorate of Page and in Dawson in Queensland, held by former minister De-Anne Kelly, the party suffered a swing against it of 13.4 per cent.
"As the leader of my party I shoulder my share of the responsibility for the outcome on Saturday," said Mr Vaile, who will remain as the MP for Lyne.
The Nationals leader, whose election stunts included skateboarding, wild pig hunting and horseback riding, maintained the party's campaign had been strong.
"We fielded outstanding candidates in all the electorates that we contested across Australia."
Mr Vaile rejected suggestions the party and its leadership were imploding and said they would still be a strong voice for regional Australia.
He also rejected merging with the Liberal Party.
"As far as amalgamation is concerned, I've opposed it in the past and I'll oppose it in the future.
"I have an absolute belief in the future of our party the National Party.
"Can I just assure everybody living in regional Australia we are going to be there as a voice for regional Australia."
Queensland Nationals Senator Barnaby Joyce says Mr Vaile's decision to step down took him by surprise.
"Mark has done a huge amount for our nation, he's been an extremely hard worker, he's held one of the highest offices in the land, he's been instrumental with so much to do with our trade," he told ABC radio.
"I think Mark has made a decision and we all respect that - we were obviously all taken by surprise, that would go without saying."
Mr Vaile worked as a jackaroo in regional New South Wales before entering federal parliament as the member for Lyne in 1993.
He succeeded John Anderson as the Nationals leader in 2005 and became deputy prime minister and minister for transport and regional services in 2006.
The outgoing Deputy Prime Minister of Australia, Mark Vaile today announced that he will resign as leader of the National party, following the Liberal/National party coalition government's defeat on Saturday. Mr Vaile took leadership of the National party after John Anderson's resignation in July, 2005.

With his wife by his side, an emotional Mark Vaile said that he had considered his future in wake of the coalition's defeat and that he believed it was time for change within the National party.

"Over the last couple of days and particularly as I drove to Canberra this morning with Wendy to come down and start packing up my office to make way for the incoming deputy prime minister, we reflected on a whole range of issues," he said.

"We are at a point in the history of politics in Australia where we believe and I believe it is time for an opportunity for a bit of a change in the leadership of our party. I certainly don't want to stand in the way of that."

Mr Vaile said that the past 11 or so years had been particularly difficult for his family. "It's been a long 10 or 11 years for my family whilst I've been away from home and they deserve a bit of time and that's what I want to give them," said Mr Vaile.

Mr Vaile said he accepted some of the responsibility for the coalition's defeat on the weekend. "As the leader of my party I shoulder my share of the responsibility for the outcome on Saturday," he said.

Mr Vaile also dismissed Liberal Wilson Tuckey's suggestion that the Liberals and Nationals should amalgamate. He said he continued to oppose the idea.

"As far as amalgamation is concerned I've opposed it in the past and I'll oppose it in the future," he said.

"My belief is that regional Australia is entitled to their unique voice and that's always been given to them by the Nationals and we have had proposals in terms of amalgamation, I've argued against it then and I'll argue against it in the future."

Mr Vaile will continue to serve the remainder of his term for his constituency of Lyne on the backbench.