In a speech at the National Press Club Prime Minister Gillard confirmed the election date.The Prime Minister said her early announcement would allow business and consumers to "plan their year". But it was also a challenge to the Opposition to deliver policy detail sooner than it might want.
"The benefit of fixing the date now is not just the end of speculation about election timing. It gives shape and order to year," she said.
"And it enables it to be one, not of fevered campaigning but of cool and reasons deliberation.
"Not a year without passion – because elections are the time in our national life where values should contend, where alternate plans should be compared and considered.
No surprises also means no excuses. Australians aren't interested in campaigns without content, platitudes devoid of purpose.
"There is now clearly the time … for the people and parties contesting the election to lay out their fully-detailed costed plans for the timely consideration of voters."
The Prime Minister will advise the Governor-General to dissolve the House of Representatives and issue writs on Monday, August 12 for the September 14 election.
Opposition Leader Tony Abbott made a statement welcomed the announcement and said the election would be about trust.
"The coalition is ready," he said.
Ms Gillard said she did not want to start the nation's "longest election campaign".
"It should be clear to all which are the days of governing, and which are the days of campaigning."