Economy, work laws, key to Australia's election

Australia' s national elections on November 24, will determine the future of the country's military contribution to Iraq and its stance on climate change, but will be fought and won on domestic issues.

Opinion polls suggest conservative Prime Minister John Howard is heading for a thumping defeat, with new workplace laws creating unease among voters and shaping up as the main issue.

But economic management, Mr Howard's age, and the government's decision not to ratify the Kyoto Protocol on climate change, will also be key issues as the centre-left Labour Party, led by Kevin Rudd, attempts to return to power after 11 years in opposition.

"I think the economy and workplace laws are the ones that are really going to make a difference in the key marginal seats," John Warhurst, professor of politics at the Australian National University, said.

"If the government is going to be saved, it is the economy, plus the advantages of incumbency and the support of the business community on the workplace laws."

Labour needs to win 16 more seats in the 150-seat Parliament to take power. Opinion polls in the lead up to the campaign indicate a solid 10-point swing of support towards Labour, which could deliver up to 40 seats if carried through to election day.

Mr Howard, 68, has won four back to back elections and has said this one will be his last. He will hand over to his deputy and Treasurer Peter Costello sometime during the next three-year term if he wins a fifth straight contest.

In announcing the poll on Sunday, Mr Howard said it would be about who had the experience to protect Australia's economy and national security, highlighting his team against the inexperience of Labour.

"This country does not need new leadership, it does not need old leadership, it needs the right leadership," Mr Howard told reporters on Sunday.

Labour's opinion poll support has surged since last December, when the party elected Mandarin-speaking former diplomat Kevin Rudd as its leader. Recent polls show voters believe Mr Rudd would make a better prime minister and has more vision than Mr Howard. "We as a country need to widen our vision," Mr Rudd said on Sunday, adding the Howard government had become stale. "What I offer Australia's people is a plan for action."

Mr Howard, a close friend and ally of US President George W. Bush, was one of the first leaders to commit troops to the 2003 war on Iraq. Australia has about 1,500 troops in and around Iraq and Mr Howard has promised they will remain as long as needed.

Mr Howard has also refused to ratify the Kyoto Protocol, saying dramatic cuts in carbon emissions will unfairly hurt Australia's economy, status as the world biggest coal exporter, and heavy reliance on coal for electricity.

Mr Rudd, 50, has built a strong poll lead with promises to withdraw frontline soldiers from Iraq and ratify Kyoto, painting Mr Howard, 18 years his senior, as old and out of touch.