Australian PM Rudd calls election for September

Australia’s minority Labor government could fall if they lose just one seat in parliament, currently holding 71 seas whiles the opposition holds 72, with one Green and six independents.

Rudd has generated a growth in support since he returned to the head of the party, but conservative opposition leader Tony Abbott is still favourite to win power.

The opposition has promised to scrap the 30 percent tax on coal and iron ore mine profits along with the carbon tax if he wins power.

A budget update on Friday revealed slowing economic growth as a mining investment boom ends, unemployment is now rising and manufacturing is shedding jobs.

“We’ve got one hell of a fight on our hands,” Rudd said, acknowledging that he could lose power.

“I have enormous confidence in the sound judgement of the Australian people. I deeply respect our democratic processes and it’s now time for the Australian people to decide.”

Read more: Rudd ousts Gillard as Australian PM

Polls show Rudd has lifted Labor’s support to give the government a chance of victory, however Abbott has warned Rudd’s government is “dysfunctional” and claimed infighting would continue if he was returned.

The opposition has promised to control government spending and stop boats from Indonesia carrying asylum seekers.

Abbot told reporters “It’s really about who is more fair dinkum”.

Since returning to office Rudd has announced toughest new measures to deter asylum seekers warning that anyone arriving by boat would be sent to either Papua New Guinea or Nauru in the Pacific for processing.