In 2006 , Ian McLachlan and Peter Costello said that under a 1994 deal between Howard and Costello , Howard would serve one and a half terms as prime minister if the Coalition won the next election before stepping aside to allow Costello to take over . Howard denied that this constituted a deal ; Citing strong party room support for him as leader , Howard stated later that month that he would remain to contest the 2007 election . Six weeks before the election , Howard indicated he would stand down during the next term , and anointed Costello as his successor . The Coalition trailed Labor in opinion polls from mid-2006 onward , but Howard still consistently led Labor leader Kim Beazley on the question of preferred Prime Minister . In December 2006 , after Kevin Rudd became Labor leader , the two-party preferred deficit widened even further and Rudd swiftly overtook Howard as preferred prime minister . Howard chaired APEC Australia 2007 , culminating in the APEC Economic Leaders Meeting in Sydney during September . The meeting was at times overshadowed by further leadership speculation following continued poor poll results
APEC Australia 2007
APEC Australia 2007
John Howard