The Australian Liberal Party has lost yet another high profile politician, with the announcement today former Federal Treasurer Peter Costello has resigned from Parliament.

His decision, which comes after months of speculation, will now mean there will be a by-election in his seat of Higgins this year.

According to Costello, his call to quit politics was made at the right time, one which he felt gave the political party enough time to elect a new minister before the upcoming election.

Costello’s decision comes just months after former Liberal leader Brendan Nelson ended his reign in the political world, and it may see two by-elections on the same day with Nelson’s former seat of Bradfield still yet to be filled.

Asked what his plans were in retirement, Costello remained tight lipped but did reveal he expected to continue contributing his talents to public service in some form.

Current treasurer and long time political rival, Wayne Swann, gave praise to Costello’s services to the country and acknowledged his achievements.

“We haven’t always agreed and we’ve been sparring partners over the years, but I think there is no doubting Peter’s commitment to the country,” Mr Swan said.

Asked what his greatest achievement was in his years in parliament, he responded immediately in naming the Goods and Services Tax (the GST).

“‘It nearly killed me,’’ he said.

Mr Costello will step down the week after next. He will hand his resignation to the Speaker of the House of Representatives on October 19.

WHAT’S YOUR OPINION?

Will Mr. Costello follow the path of Dr. Nelson and be offered a job by the government?

Will the political world ever see Costello return?

Will his decision affect the Liberal Party? How?