Australian Prime Minister and Labor Party leader Kevin Rudd has called a general election for 7 September which the opposition Conservatives are however being tipped to win.
The decision comes six weeks after he toppled former leader and prime minister Jullia Gillard in an internal party vote, three years after he himself was dumped as leader and premier by his own party.
Mr Rudd's return to the helm of his centre-left government has generated a spike in public support but conservative opposition leader Tony Abbott is still favourite to win power.
The current Labor government could fall with the loss of just one of the 150 seats in parliament.
His government presently holds 71 seats, the opposition 72, with one Green and six independent cross benchers.
Mr Abbott's opposition has promised to scrap an unpopular 30% tax on coal and iron ore mine profits, as well as a carbon tax of AUD$24.15/tonne (€16.18/tonne) if he wins power.
In power since 2007, Labor steered Australia's AUD$1.4 trillion (€938bn) economy clear of recession following the 2008 global financial crisis, aided by a prolonged mining boom fuelled by resources demand from China and India.
However, a budget update on Friday showed Australia's economic growth is slowing as the mining investment boom ends, with unemployment rising and the manufacturing sector in particular shedding jobs.
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