Australian PM sets poll date

Buoyed by opinion polls endorsing her new leadership, Gillard called the election yesterday only three weeks after grabbing power in a surprise ruling Labour Party coup. She said the government had "lost its way" under predecessor Kevin Rudd and has attempted to steer new courses in key policy areas.

"We would go into our second term with some lessons learnt," Gillard said. "We would be able to implement and deliver programmes differently than we have in the past."

Opinion polls point to Labour winning a second three-year term, but analysts expect a tight contest against a resurgent conservative opposition Liberal Party led by Tony Abbott.

Gillard, a 48-year-old Welsh-born agnostic, was once considered too far left to win over the political middle ground essential to an Australian election victory, while Abbott, 52, a former seminarian, was viewed as too far right.

Both have shifted their parties' directions but maintain bipartisan support for major foreign policy issues, including Australia's deployment of 1,550 troops to Afghanistan.

Gillard has attempted to stem a surge in asylum seekers trying to reach Australia by boat by asking its tiny neighbour East Timor to host a United Nations regional refugee processing hub.

Labour has condemned a Liberal plan to deter asylum seekers by introducing temporary protection visas, which would enable the government to send refugees back to their homelands if conditions there improved.

The election issue is key, with more than 4,000 asylum seekers having arrived in Australia by boat in the past year.

Gillard was deputy to Rudd, who became a Labour hero when he led the party to a crushing election victory in November 2007 after 11 years in opposition.

He remained one of the most popular prime ministers in modern Australian history until he made a series of unpopular political moves this year, including shelving a key pledge to make major industries pay for carbon emissions.