Scott Morrison is set to roll the dice this weekend on a May federal election, after just seven months as prime minister.
Opinion polls have the Labor opposition ahead by an average 53-47 on a two-party preferred basis, which if translated at the polls would see Bill Shorten governing with a comfortable majority in the 151-member House of Representatives.
The minority Liberal-National coalition government is hoping to claw back to majority with a budget delivered on Tuesday promising income tax cuts, a $100 billion spend on road and rail and targeted sweeteners to win over voters in marginal seats.
At the same time, it is appealing to economic conservatives and its corporate base with a forecast return to surplus in 2019/20, a plan to pay down debt within a decade and extend tax breaks for small business.
Australian Opposition Leader - Bill Shorten Source: AAP
However, Labor says its tax cuts are deeper and fairer to those on low and middle incomes and has pledged bigger spends on health and education.
Mr Shorten's campaign will home in on concerns about low wages growth, the rising cost of living, a lack of action on climate change, as well as voter disgruntlement over the "chaos" of the past term.
Labor will be backed by the union movement which has been running under the banner of Change the Rules - seeking workplace reform to restore a fair go for workers.
Prime Minister Scott Morrison is getting ready to announce an election date. Source: AAP
Mr Shorten is promising to restore penalty rates, get the Fair Work Commission to look at a "living wage" to replace the minimum wage and scrapping the coalition's construction industry watchdog.
While the Liberal campaign will have its positive messages about the need for good economic management and being best placed to handle national security, it will also take aim at Labor over its union "puppet-masters" and the risks that poses.
Labor's promises to reform negative gearing, capital gains tax and franking credits will also be used against the party as attacks on home owners, investors and retirees.
However, Mr Shorten says the reforms show Labor is economically responsible, as Australia faces the challenges of a slowing global economy and declining business and consumer confidence.
Minor parties will play a key role, with Labor relying on Greens preference to get over the line in a number of marginal seats and the coalition hoping to gain conservative party preferences.
Neither major party is expected to win majority control of the Senate, with half of the 76-seat upper house up for grabs.
After a national redrawing of seat boundaries, the coalition starts with a notional 73 seats (down from 74) with Labor on 72 (up from 69).
