CANBERRA, July 2 (Reuters) - Australia's Prime Minister Julia Gillard cleared the political decks for an election on Friday by ending a two-month fight with the mining industry over a proposed new resources tax.
Here are some questions and answers about the upcoming election, which is due by the end of the year.
WHY WOULD GILLARD WANT AN EARLY ELECTION?
Gillard replaced Kevin Rudd as prime minister in a party-room coup on June 24, but now wants a mandate from voters before she stamps her full authority on the office or makes any big changes to her cabinet line-up.
She is the first woman prime minister in Australia, and has prompted an initial bounce in the ruling Labor Party's poll standing. The latest Reuters Poll Trend found Gillard had given Labor a stronger chance of winning the election.
Some analysts believe Gillard should call an election immediately, to cash in on her political honeymoon period. But others are prompting caution, and suggest more polls are needed to fully assess voter reaction to Gillard as Prime Minister.
IS THE MINING TAX THE KEY ISSUE FOR THE ELECTION?
No. Gillard had made resolving the fight with miners her top priority since taking over from Rudd and she has delivered a deal after just a week in power. But while it was crucial to reach a compromise before the election, Gillard has other issues she also wants addressed.
Gillard will now tackle changes to immigration and refugee policy, to try to neutralise the opposition's attack on the government for being soft on protecting Australia's borders.
A surge in refugee boats coming to Australia over the past 18 months has been a burning issue in some areas, and Gillard has signalled she will toughen policies to try to allay voter concerns. In the next week, she will decide whether to extend a ban on processing asylum seeker claims from Sri Lankans. Other tougher measures to fight people smugglers and deter refugee boats are also likely.
Before she calls an election, Gillard also wants to reposition the government on its climate policies and plans to put a price on carbon. A key part of Rudd's political downfall was his decision to delay his centrepiece emissions trade scheme for at least two years, in a move that led voters to question what he stood for. Gillard is likely to try to regain public trust on climate policy with a new plan to build consensus for a price on carbon.
WHEN WILL GILLARD CALL THE ELECTION?
The most likely date for an election is now August 28 or September 4. That gives Gillard a few more weeks to reposition the government's policies, and voters more time to get to know the new prime minister.
That would also allow time for more opinion polls, so Gillard and election strategists can be more sure of voter sentiment before the election campaign starts.
(Editing by Ed Davies and Ron Popeski)
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