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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared NEWSMAKER-Wounded Sen. Dodd guided Wall St reform to victory 1:00am EDT WRAPUP 1-BP stops flow of oil into Gulf of Mexico 1:00am EDT Bookies see European shares opening higher 1:05am EDT Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 BP stops flow of oil into Gulf of Mexico | Video 1:21am EDT Gulf well test starts after cap repair: BP exec 15 Jul 2010 UK Stocks -- Factors to watch on Friday July 16 2:03am EDT Nikkei marks biggest fall in over one month 3:23am EDT Ancient ship unearthed at World Trade Center site 15 Jul 2010 Wall Street reform clears Congress | Video 15 Jul 2010 Tired Gay succumbs to Dix in 200 meters 03 Jul 2010 Goldman to settle with SEC for $550 million | Video 15 Jul 2010 BP stops flow of oil into Gulf of Mexico | Video 1:21am EDT WRAPUP 1-BP stops flow of oil into Gulf of Mexico 1:00am EDT Muslims seek to add holidays on NY school calendar 12 Jul 2010 Wall Street reform clears Congress | Video 15 Jul 2010 Ancient ship unearthed at World Trade Center site 15 Jul 2010 Banks repossess US homes at record pace -RealtyTrac 15 Jul 2010 At least 21 killed in Iran suicide attacks | Video 3:24am EDT Sniffing insulin may help memory lost to Alzheimer's 15 Jul 2010 Australia set for poll focused on economy: report Digg This Tweet This Share on LinkedIn Share on Facebook Factbox How an Australian election works 12:56am EDT Related News Snap Analysis: Australia faces election as economy hums 12:33am EDT Australia economy key focus of election campaign 12:33am EDT Related Topics World » Australia » Julia Gillard » Tony Abbott » By Michael Perry CANBERRA | Fri Jul 16, 2010 3:14am EDT CANBERRA (Reuters) - Australian Prime Minister Julia Gillard is expected to call an election on Saturday taking advantage of a rebound in support for her Labor party, narrowly ahead in opinion polls, and a robust economy. Australia's first woman prime minister is expected to call an August 28 poll, the Australian Broadcasting Corporation said, giving voters stark choices over a new mine tax and climate policy, but little difference in economic management. "I'm not engaging in election speculation," she told reporters earlier on Friday, but media speculation grew that she would call a late August poll on Saturday or next weekend. "But whenever the election is called, there will be a very clear choice about whether Australia moves forward or back." Her office declined comment on the ABC report, which cited Labor party sources. Financial markets showed no reaction to the report with the Australian dollar steady at $0.87/85. Economists said the impact on markets would be minimal during the election campaign as both the Labor government and Liberal-National opposition are economically conservative. The main focus is the government's new 30 percent mining tax. Gillard has pledged to introduce a new resource rent tax if elected, raising A$10.5 billion from 2012, but the conservative opposition has vowed to dump the tax, even though it has been agreed by global miners BHP Billiton, Rio Tinto and Xstrata. "The coalition is less interventionist," said Shane Oliver, head of investment strategy at AMP Capital Investors. "They will can the mining tax. While that benefits the material sector, it has implications on superannuation and other spending the tax would have bank-rolled," said Oliver. Australia's robust economy, which dodged recession in 2009 and emerged strong from the global financial crisis, will be key to the 2010 election. And Gillard has said she will seek re-election on a platform of creating jobs. "The election is largely going to be fought on whether or not you believe it's important for the government to support jobs," Gillard said on Friday. The government claims much of the credit for this performance, citing a fiscal stimulus and quick action on guaranteeing bank wholesale funding. But analysts give just as much credit to a sound banking system, steep cuts in interest rates by the Reserve Bank of Australia and population growth. PM PLEDGES BUDGET SURPLUS Gillard was appointed prime minister in a Labor party coup on June 24 to avoid electoral defeat after just one-term in office under then leader Kevin Rudd. Since her ascendancy, Labor has regained a narrow opinion poll lead over the opposition and Gillard has been expected to call an early poll to capitalize on her honeymoon period. But she has at times struggled to sell policies on the economy, resources, climate and asylum seekers. Conservative leader Tony Abbott needs to win only nine seats from the government to take office. The government has said it will return a budget surplus by 2013, but opinion polls show voters view the opposition as better economic managers, despite Labor steering the economy through the global financial crisis and avoiding recession. The opposition has also promised a return to surplus and tight controls on spending. GREENS KINGMAKERS Many voters have deserted the major parties for the small Greens party, which is set to be the kingmaker in the upper house Senate and influence policy of the next government. The Greens' major demand on the next government is for the introduction of an interim carbon price ahead of a market-based emissions trading scheme. The Labor government lost voter support in the past year over its failure to introduce a carbon trading scheme to fight climate change and business has warned that a lack of a clear climate policy is now hindering investment in the power sector. On the issue of asylum seekers and border protection, which is resonating in key marginal seats, Gillard has proposed a regional asylum processing center, possibly in East Timor, as a way to stop boatpeople arrivals. But the scheme has received little support in Asia and at home, while the opposition has said it would turn the boats back and reopen Pacific island detention centers. (Editing by Ed Davies and Jonathan Thatcher) World Australia Julia Gillard Tony Abbott Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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