Retirement ... Senator John Faulkner has announced his retirement from the Senate. Picture: Kym Smith/News Corp. Source: News Corp Australia

The former Minister had already flagged he wouldn’t be contesting a seat when his term expires in 2017.

But Senator Faulkner will call it quits next year instead.

“It’s been an immense privilege to serve in the Australian Senate,” he told reporters.

“I’ve been a Senator now for 25 years,” the Senator said, adding he’s been in full-time politics for 35 years, after first serving as an ALP official.

Senator Faulkner wished Bill Shorten and his “caucus colleagues” well and thanked his staff.

But when asked who he thought was Labor’s best leader, he promptly answered: “John Curtin”, sidelining Shorten, Julia Gillard, Bob Hawke and Paul Keating.

He made special note of the role of the Senate, as a “powerful Upper House” of review.

“I will, I can assure you, as a private citizen, maintain a close interest in its work.

“I owe the Labor Party everything,” he said, pledging to remain an “active” Labor Party member.

Senator Faulkner said it was his intention to formally submit his resignation after Australia Day, but before the Upper House sits next year.

Statesman ...Senator John Faulkner speaks at the State Memorial Service for Gough Whitlam at the Sydney Town Hall. Source: News Corp Australia

He ruled himself out as a candidate for the Labor Party’s National President, as well as being a delegate.

“Of course I am a Labor loyalist,” the veteran said, insisting it was a “good time for a new generation to step up”.

When asked whether he thought Labor is ready to govern again, the retiring Senator said it was a matter for the Australian people.

“I think that the Labor Party has effectively rebuilt its fortunes since the last election.

“It’s working hard to rebuild its standing in the Australian community.”

The former Defence Minister said there is nothing in politics “much tougher” than being in that position when “your nation is fighting a war”.

But he admitted no job is “easy”, nor is being in Opposition.

Senator Faulkner refused to divulge what happened in the Prime Minister’s office on the evening of June 23, 2010 - the evening Julia Gillard challenged Kevin Rudd.

“I gave my word and I intend to keep it,” he said, remarking on his promise he made to keep the meeting confidential.

Remaining tight-lipped ... Former prime minister Kevin Rudd walks with John Faulkner from the Caucus Room where he lost the Labor leadership to Julia Gillard. Source: News Limited

Senator Faulkner said he didn’t intend on writing a book.

“I think there are enough books on the book shelves at the moment.”

Bill Shorten paid tribute to Senator Faulkner’s “remarkable and enduring contribution” to the Labor Party and Australia.

“He is an outstanding orator and Parliamentarian,” the Opposition Leader said, adding his talents as a “fearless Senate Estimates examiner” and “relentless pursuer of reform”.

“While Ministers and Departmental Secretaries may not miss his formidable, forensic questioning, we will certainly miss his invaluable wisdom and his indomitable spirit.

“We honour John’s service today, but we don’t say goodbye.

“I know that John’s contribution to our cause is far from finished. Labor and Australia still need John Faulkner.”

Causus colleagues ... Opposition leader Bill Shorten and long-serving Labor Senator John Faulkner. Source: News Corp Australia