IT WAS the party for Kevin Rudd’s inner circle.

A New Year’s Eve bash for those friends and allies who helped him become Prime Minister in 2007 and who hold the key to his success in 2008.

As hundreds of thousands packed the Sydney harbour foreshore to watch the fireworks, the nation’s new sphere of influence arrived at Kirribilli House for drinks, dinner and a stunning view of the display.

After making much of his decision to live in the decidedly less flashy Lodge in Canberra, Mr Rudd and his family have settled into life at Kirribilli for the next fortnight, inviting their mates around for last night’s soiree with premium plonk on tap.

Julia Gillard, Acting Prime Minister while Mr Rudd is on holiday, arrived early with her partner Tim Mathieson.

“I hope everyone has a great night and that if they make a new year’s resolution they keep it for at least a week,” she said. “Have a great 2008.”

She was followed by Treasurer Wayne Swan and his family. “I wish everyone a happy new year. It’s time to deliver on our election promises and to put in thefoundations for a prosperous Australia. There are a lot of challenges ahead and we will meet them with energy and commitment,” he said.

Queensland Premier Anna Bligh, who along with husband Greg Withers was making her first trip to Kirribilli House, is hoping for rain in 2008. “What I want is a wet one,” she said.

ALP powerbroker Mark Arbib, considered pivotal in helping Mr Rudd take over the Labor leadership, was a guest, as was former Brisbane lord mayor Jim Soorley.

University of Melbourne Vice-Chancellor Glyn Davis and his wife, RMIT vice chancellor Margaret Gardner, were among the first guests to arrive, around 6pm.

Dr Davis, a former head of the Queensland Department of Premier & Cabinet, has been touted as a possible replacement for Peter Shergold in the Department of Prime Minister and Cabinet.

Other guests included campaign strategist Bruce Hawker and his wife Mary and Mr Rudd’s chief of staff David Epstein. Mr Rudd’s brother Greg came from Brisbane for the function.

Between 30 and 40 guests were treated to drinks ahead of a sit- down dinner. The party was paid for by the Rudd family.

Cartons of Corona and Cascade beer were taken into the Prime Minister’s Sydney residence, as were bottles of Henschke sauvignon blanc and champagne.

After dinner, Mr Rudd and his guests were able to take up the invitation offered by his next-door neighbour, Governor-General Michael Jeffery, to stroll across to the lawns of Admiralty House to watch the fireworks.

This will be the last year Major General Jeffery will see in the new year from a harbourside mansion. The 70-year-old, who has held the office for just over four years, has indicated he will not seek reappointment beyond August.

Liberal leader Brendan Nelson spent the evening at a mate’s house in his northern Sydney electorate of Bradfield, enjoying a barbecue with family and friends.

The new Coalition leader hasn’t taken leave over the holiday period but has found time to paint the lounge room of his St Ives home — something he promised his wife Gillian he would do on the day after the federal election, but had to delay when he became Liberal leader.