The entire party membership should chose its Leader!
Proportional representation seems fair and far more democratic.
Don't like the preferential system, too easily rort by folks, with very large cheque books or media imputation, or selection power?
I can only add, that all representatives ought to face their intended electorate in a primary, where all the eligible voters would actually chose all candidates, in a non compulsory vote.
If you don't participate, you can then hardly critique the electorate's choice!
The two leading candidates going to another primary, if no one candidate scores a majority.
This way, the most popular local candidates, from all sides of the political spectrum, would win the right to contest the seat!
And as you put it Sarah, the most persuasive local candidate would win on merit, rather than the nod from this or that power broker, or as a result of undue media influence!
It would also change the very nature of parliament, with the most eloquent speakers, arguing the most logical case, or putting the most interesting ideas, prevailing?
I mean if it were left entirely to the people to chose the peoples' parliament, no candidate would be afraid to cross the floor?
In fact, if he or she thought that any particular decision would disenfranchise or adversely affect "their" electors, they would be almost honour bound, to cross the floor.
Even so, a parliament truly chosen by the people, would one contends, be a kinder gentler place?
Rhrosty.

...I believe the current (apparent) ad-hoc method of leadership selection is pretty brilliant as it stands…Particularly as evidenced in the Labor party, with the alternating selection of leaders Gillard and Rudd.

...The current Labor leadership "stoush" simply adds evidence of the re-invention of the new Labor; and not before time. The use of the media fetish with polls is actually beneficial: What more effective way to make politicians sensitive to the voice of the electorate; and quickly?

...I am very happy with the workings of Democracy through the media on this level of politics.

It is worth remembering, if there is a change of government at the upcoming election, how long does anyone really think it will take until this issue comes up on the Liberal side? Tony Abbott is hardly a popular politician (even by the standards of politicians). If he is elevated to the position of PM, no reasonable thinking person can say it will be by anything other than a move against the ALP and its leadership, not a move in favor of him personally. And just as we saw last time, after 12 – 18 months of political ‘honeymoon’, public opinion of the Government will drop (as it inevitably does after a change in government), and the papers will wonder if it wasn't one thing for Abbott to be an attack dog Opposition Leader, but another for him to be PM running the country. And then we’ll hear that Messrs Turnbull, Hockey and probably others are sounding out support (ostensibly in fear of letting those loonies on the other side back in, but with NOOOO ill will or disrespect intended to the person they challenge), and the whole cycle will repeat.

But that’s the thing. We can say that Julia Gillard, Kevin Rudd, Tony Abbott (whoever) should have been better. They should have listened better, they should have consulted better, shouldn't have brought in this policy or that policy. And we can complain the newspapers should stick to reporting policies, rather than muckraking. But none of that is actually the point. This is a problem that this is a structural problem that can be solved by structural change, immunizing the result from the vagaries of people.

Perhaps Sarah, you haven't noticed that the US has something approaching as practically as is probably possible, what you are suggesting. They then vote for their leader directly.

That is one circus we don't need to import across the pacific.

Tony Abbott is hardly a popular politician..
Leigh42,
Kevin Rudd is a popular politician.
Tony Abbott has already been competent as a minister, Kevin Rudd is already proven incompetent beyond reasonable doubt.
I'd have thought it a no-brainer whom to votoe for in September. If you're so taken by popularity why not vote for a pop star or a sports star if competence does not matter ?

They already have individual.

His name is Garrett, & we know how incompetent he is