Canberra:
Australian Prime Minister Julia Gillard called a leadership showdown with rival Kevin Rudd on Wednesday, in a bold move that could see the ruling Labor Party dump a sitting prime minister less than three months before national elections.
The moves to oust Gillard and return to Rudd follow a series of opinion polls showing her minority government could lose up to 35 seats at the Sept 14 elections, giving the conservative opposition a massive majority in the 150-member parliament.
"There are no more opportunities, tonight is the night, and this is it," Gillard said, calling for Rudd to show his hand in the leadership vote at 7 pm (1430 IST).
"We cannot have the government or the Labor Party go to the next election with a person leading the Labor Party and a person floating around as the potential alternate."
Rudd is more popular with voters and could give Labor an outside chance of victory at the elections, although a change of prime minister could force the elections to be held earlier.
Gillard now rules with a one-seat parliamentary majority, with support from the Greens and key independents.
Opposition Leader Tony Abbott, the favourite to win the looming elections, has promised to scrap an unpopular carbon tax and a 30 percent tax on iron ore and coal mine profits if he wins power.
Gillard said she would quit politics at the election if she loses the leadership to Rudd, whom she toppled in a leadership coup in June 2010.
Rudd, who failed with aborted leadership coups in 2012 and again in March, confirmed he would challenge Gillard and said he was prompted to act because of fears the party faced an electoral wipeout in September. He also said he would quit politics if he loses the leadership vote.
"The truth is many, many MPs have requested me for a long, long time to contest the leadership of the party, because of the parlous circumstances we now face," Rudd told reporters.
But any return of Rudd as prime minister could force Australia's governor-general, as head of state, to intervene and initiate an immediate election, as Rudd does not have agreed support from independent lawmakers who wield the balance of power in parliament.
The Greens and key independents have said Rudd, if elected, would need to test his support in parliament.
Several key ministers, including Treasurer Wayne Swan and Communications Minister Stephen Conroy, have also said they would not serve under Rudd.
Rudd, however, said he would hold no grudges against internal critics and he would not punish ministers who have remained stubbornly loyal to Gillard.
He has also promised tighter control of public spending, a speedier return to surplus budgets, and stronger economic growth if he wins office.
With the leadership speculation swirling on Wednesday, Abbott suspended question time to urge Gillard to end the uncertainty over her future and call elections for August 3.
"We see the tremors of leadership change shaking the foundations of this parliament," Abbott told lawmakers.
"The poison inside the Australian Labor Party is paralysing government in this country. Why should we limp on for another 80 days of confusion and paralysis under the current regime? Let's have an election."
© Thomson Reuters 2013