Australians will go to the polls on August 21 after Prime Minister Julia Gillard announced the date for the next federal election.

Ms Gillard made the announcement at a media conference in Parliament House just after midday.

"Today I seek a mandate from the Australian people to move Australia forward," she said.

"This election, I believe, presents Australians with a very clear choice. This election is about the choice as to whether we move Australia forward or go back."

Ms Gillard said she had been driven through her adult life by a clear set of values learned from her parents.

"Over the last few weeks I have had the opportunity to share those values with the nation," she said.

"I believe in hard work. I believe in the benefits and dignity of work. I believe in what comes as an individual when you do your best and you earn your keep."

Ms Gillard said there was no challenge Australia could not conquer if the country worked together.

"So in this, the forthcoming election campaign, I'll be asking the Australian people for their trust," she said.

"I'll be asking Australians for their trust so that we can move forward together."

Ms Gillard said moving forward meant plans to build a sustainable Australia, "not a big Australia".

"Moving forward means making record investments in solar power and other renewable energies to help us combat climate change and protect our quality of life," she said.

Ms Gillard said budget surpluses and a stronger economy would offer Australians the chance "to get a job, keep a job, learn new skills, get a better job and start your own business".

She said she would protect the Budget's return to surplus in 2013 during the campaign by not going on an "election spendathon".

"By making sure that any promise we make to spend money is offset by a promise to save money," she said.

"By making sure that the budget bottom line doesn't change by one cent during the election campaign."

Ms Gillard said she wanted to build what Australia achieved working together in the face of the global financial crisis and global economic uncertainty.

"The uncertainty is not behind us yet, and economic challenges are still very much with us and hard working Australian families who are doing it tough can attest to that," she said.

The Prime Minister said that "moving forward" also meant stronger protection for the nation's borders.

"And a strong plan, a real plan that takes away from people smugglers the product that they sell."

Ms Gillard noted that Labor had increased expenditure on hospitals by 50 per cent in its first term.

She said moving forward on health meant training 3000 nurses and 1300 GPs during the next three years "all the while as we expand our GP super clinics and implement our health reforms.

"We'll move forward together with a sustainable Australia, a stronger economy, budgets in surplus and world-class health and education services and other essential services that hard working Australians and their families rely on," she said.

Ms Gillard said the Opposition's economic approach was backward looking, citing the Coalition's stance against the stimulus package.

Failing to provide the stimulus would have sent the economy downwards into a spiral of lower incomes, lost jobs and reduced services.

"That is the spiral they would have recommended for this country but the wrong thing for Australians. It would have taken us backwards," she said.

Ms Gillard accused Opposition Leader Tony Abbott of remaining committed to Work Choices, no matter what words he sought to use as camouflage.

"In terms of the words he seeks to disguise his intent with, we have heard all of that before," she said.

"Their gaze is fixed in the rear-view mirror, rather than on the road ahead," she said.

Ms Gillard said Mr Abbott thought improving education and health meant cutting their funding.

"He's now calling for that same backwards-looking approach to other services that hard-working Australians need," she said.

"Instead of creating GP super clinics, he would eliminate them, instead of expanding trades training centres, he would end them, instead of providing computers to children in schools - he would see none of that."

Ms Gillard said she believed the Labor Government had been a good one, but acknowledged there had been "some problems".

"Yes there has been some lessons learned and I've acknowledged that we've learned some lessons along the way."

Mr Abbott represented a threat to the nation's future and return to policies of the past, Ms Gillard said.
"We've come too far as a country and we've evolved too much as a society to risk that kind of backwards looking leadership."

Australians had an opportunity to elect a government that would see the nation become stronger.

"The choice is very, very clear. And I look forward to presenting our case for judgment to the Australian people over the weeks ahead."

It was an early start for Ms Gillard, who left her home in Melbourne about 7am (AEST) before flying to Canberra for a 10.40am meeting with Governor-General Quentin Bryce at Yarralumla.

The Prime Minister emerged from Government House 30 minutes later after formally seeking permission to hold the election.

Young families, cyclists and many media members were camped on the grass outside the entrance to the official residence.

A small group of protesters held a banner saying: "We want Kev the people's PM."

Source: AAP

August election tipped