New South Wales Premier Mike Baird unexpectedly announced he is stepping down and retiring from politics, in order to stand with his family and help his parents and sister through "serious health challenges".

"As I have reflected on the approaching halfway mark of our current term of government, and the opportunity it presents to refresh the Cabinet team, I have decided that this is the perfect time for me to hand the reins over to a new Premier," Mr. Baird said in a statement.  "Serving as Premier of NSW has been a tremendous honour, but I have made clear from the beginning that I was in politics to make a difference, and then move on.  After 10 years in public life, this moment for me has arrived."

Talking with reporters, Baird said NSW the strongest job and economic growth and lowest unemployment rate in the country, but regretted not being able to enact tax reform.

The leadership will will unfold next week - Tuesday, according to the ABC - and it is likely that the Liberal party will sort out leadership positions in the partyroom beforehand.  State Treasurer Gladys Berejiklian will seek Baird's old desk and reportedly has already locked up the votes to take the top job.