Nov. 24 (Bloomberg) -- Prime Minister John Howard conceded defeat in Australia's election to Kevin Rudd's Labor Party.

``I bequeath to him a nation that is stronger, prouder and more prosperous than it was 11 1/2 years ago,'' Howard, the second- longest-serving prime minister, told Liberal Party supporters in Sydney. `` I want to thank the Australian people for the privilege they have given me.''

Labor has won 72 of parliament's 150 seats in the election, compared with the coalition's 48 after 71 percent of the vote had been counted, the Australian Electoral Commission said.

Howard, 68, was battling to hold his own seat. With 73.5 percent of the vote in his Bennelong district counted, he is facing a swing of 5.2 percent against him, almost enough for Labor's Maxine McKew to win.

Howard, who defied opinion polls to win elections in 2001 and 2004, failed to convince voters Rudd, 50, was not experienced enough to run the economy and that unions would have too much influence on a Labor government.

It is only the seventh time Australians has ousted their government since the beginning of World War II.

To contact the reporter on this story: Gemma Daley in Sydney at gdaley@bloomberg.net

Last Updated: November 24, 2007 06:46 EST