Prime Minister Kevin Rudd has called the federal election for September 7 with both major parties offering ''positive'' visions for the future.
Mr Rudd flew from Brisbane to Canberra on Sunday to visit Governor-General Quentin Bryce, where he asked her to dissolve the parliament.
''Australians now face a choice. And the choice couldn't be starker,'' he said in an email to supporters.
In the email, Mr Rudd said he had a positive vision but that Labor, which has adopted the campaign slogan of ''a new way'', had ''one hell of a fight on our hands''.
In a press conference at Parliament House, Mr Rudd said: ''The time has come for the Australian people to decide on our nation's future.''
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Mr Rudd described Australia as a ''truly great'' country that was blessed with a strong economy and hard-working and creative people.
''Australia is too open and positive a nation to retreat into a tight little ball of negativity,'' he said.
Mr Rudd told reporters that the election would be about who the Australian people trusted to lead them through new economic challenges that lay ahead, brought about by the end of the China resources boom.
The Prime Minister said that the ''politics of the past'' would not work in the future, arguing that negativity did not create jobs, build schools or hospitals.
''Three-word slogans don't solve complex problems, they never have and they never will,'' he said.
The Prime Minister said that he had called the election on September 7, saying ''frankly, this was the best date available''.
He acknowledged that this meant the local government referendum would not go ahead with the election but said it would be something Labor looked at in the next term of government.
He again challenged Opposition Leader Tony Abbott to debate him during the campaign, as early as Monday night. He also said he would be keen to debate Mr Abbott on every Sunday of the campaign.
The Opposition Leader responds
At a press conference in Canberra, Mr Abbott said the election was about a ''clear choice'', which he described as between the ''positive'' plans of the Coalition and ''more of the same'' under Labor.
''At last, the choice is yours,'' he told reporters in Canberra. ''It's not the choice of the caucus, it's not the choice of the faceless men.''
Mr Abbott said he was happy to place himself ''in the judgment of the Australian people''.
He said the Coalition would deliver a stronger economy, repeating his pledges to scrap the carbon tax and the mining tax.
The Opposition Leader also said the Coalition would deliver better results on border protection.
''We'll never rely on another country to do the job for us,'' he said, alluding to Labor's recently announced asylum seeker settlement deals with Papua New Guinea and Nauru.
Mr Abbott said Labor had no plan to manage the economy, pointing to the government's economic statement, which was handed down last Friday.
The economic statement showed that the 2013-14 deficit had climbed from $18 billion forecast in May to $30.1 billion.
Mr Abbott asked on Sunday: ''Do you really want three more years like the last six?''
He told reporters that there was almost ''nothing wrong'' with Australia that would not be improved by a change of government.
The Opposition Leader also pledged that he would not lead a minority government.
Mr Abbott said that he would not do ''deals'' with independent MPs and minor parties - as was the case when former prime minister Julia Gillard formed government in September 2010.
He also said that the Liberal Party federal director Brian Loughnane had written to the Labor Party about a series of debates. The letter said the Liberal Party believed that the first debate should be held ''next Sunday afternoon or evening at the National Press Club in Canberra''.
It also said that a ''number of forums'' should be held during the campaign, proposing one at Rooty Hill in Sydney's west and a third in Brisbane on dates agreed to by both leaders.
Earlier, Shadow Treasurer Joe Hockey indicated he was unimpressed by Mr Rudd's election opener.
''It's not about you Kevin,'' he posted on Twitter. ''For someone who wants to be really positive he is spending a lot of time running a negative case.''
Lead up to poll announcement
Fairfax Media reported on Saturday that September 7 would be the most likely election date, with Mr Rudd to set that date on Sunday or Monday.
The September 7 election is a week earlier than the poll date initially announced by former prime minister Julia Gillard.
When Mr Rudd took back the Labor leadership in June, he indicated he would not stick to Ms Gillard's September 14 poll, but had not confirmed the date until Sunday, despite repeated calls from the Coalition for him to do so.
Referendum
The September 7 date means the referendum on local government recognition cannot be held in conjunction with the federal election.
The referendum - which would ask voters whether or not they agree to the financial recognition of local government in the constitution - could only be held with a September 14 poll, or later.
The September 7 poll date also clashes with the G20 Summit in Russia on September 5 and 6.
''It's my intention to be in St Petersburg but I'm very mindful also of the other challenges which lie ahead of us as well,'' Mr Rudd told reporters from Brisbane on Saturday.
Mr Rudd said at his press conference later on Sunday that Foreign Minister Bob Carr is likely to attend the G20 instead.
In another email sent to Coalition supporters soon after the election was announced, Liberal National Party President Bruce McIver described the election as ''the clearest choice in a generation''.
''It's a choice between a truly united Coalition with our Real Solutions Plan or Labor and its chaos, division, dysfunction,'' he said.
Greens leader Christine Milne told reporters in Hobart that the Greens would be ''campaigning hard'' to hold all its seats and would also contest every seat in the country.
''I look forward to a strong and vigorous campaign,'' she said.
Senator Milne said the Greens were offering care for people and the environment at the election.
''I don't think the Australian people want the option of cruelty. But that's all that on offer from the old political parties,'' she said.
Senator Milne predicted that the Greens vote would ''build'' in both the country and city areas.
''We live in a society, not an economy,'' she said.
September 7 is also National Threatened Species Day, a fact that the Greens have seized upon.
''September 7th is Threatened Species Day, chance to vote for Tas Devil, theTarkine, the leadbeater's possum, GBR, forests. Only Greens care,'' Senator Milne posted on Twitter.
Deals done
Earlier on Sunday, Mr Rudd announced that agreements had been reached with Western Australia on disability care and with Victoria on schools funding, clearing two major hurdles before the federal election.
Confirming details of the Victorian agreement, Education Minister Bill Shorten said that an election would be called "some time very soon".
On Saturday, Mr Rudd identified negotiations with both WA and Victoria as two key pieces of business left to deal with before the government went into caretaker mode.
He also singled out negotiations with New South Wales on environmental assessment procedures.
"Now, these three negotiations haven't reached conclusion yet, so we have a few things to attend to yet and so therefore on your question, I've made no determination whatsoever in terms of the date of an election," he said.
With Jonathan Swan and AAP
