The vote was 45-40 after Julie Bishop and Peter Dutton were knocked out from the running for PM.
On Tuesday, Minister for Home Affairs, Dutton challenged Malcolm Turnbull for leadership of the Liberal party. He thought the party had lost faith in the PM resulting in a leadership spill which ultimately led to him stepping down as Prime Minister.
But what exactly do we know about Australia's next potential PM?
Morrison, who grew up in Sydney' South, is a member of ShireLive evangelical church and has been vocal about his Christian beliefs.
Born in the Eastern suburbs of Sydney, Morrison is the son of a police officer.
He entered parliament in 2007 where he was won preselection in the seat of Cook in Sydney’s Sutherland Shire.
In 2009, he became shadow minister for immigration and citizenship in the Abbott government.
In 2014, he was appointed Minister for Social Services but became treasurer in 2015 when Malcolm Turnbull replaced Tony Abbot as PM.