Australia will hold general elections on August 21, said Prime Minister Julia Gillard.

Gillard, Australia’s first woman prime minister, said the election would be running “tight”.

The ruling party, the Labour Party chose she as leader three weeks ago after Gillard predecessor rid Kevin Rudd.

The competition between Labour and the opposition conservative Liberal Party is expected to focus on economic issues, health, climate change and immigration.

“This election is about the choice to bring Australia to move forward or backward,” Gillard said in a televised speech in Canberra.

“Moving forward means moving forward with a budget surplus and a stronger economy.”

She said this also means “moving forward with better border protection and strong plans, real plans expel human smugglers and the products they sell.”

Liberal Party opposition leader Tony Abbott questioned the change of Labour leadership recently by saying Gillard will still apply the same policy.

The upcoming election will be the toughest competition in the political career Gillard, says the BBC’s Phil Mercer in Sydney.

The new poll conducted showed Labour ahead and Gillard hopes will reign for three years, the BBC added.