UPDATED 6.23PM Australian Prime Minister Malcolm Turnbull has formally called an election for July the 2nd.

He has asked the Governor-General to dissolve both houses of parliament - which will mean all 150 House of Representatives seats and 76 Senate places are up for election.

It paves the way for the first double dissolution election since 1987.

The opinion polls have the two major parties headed into the election locked at 50-50 on a two party preferred basis.

The coalition government currently holds 90 seats in the 150-seat House of Representatives, while Labor has 55.

The government can afford to lose 14 seats, while Labor needs to win an extra 21 for victory.

Mr Turnbull said there's a very clear choice at the election - to stick with the coalition's plans for jobs and growth or go to Labor, whose policies "will stop our nation's transition to the new economy dead in its tracks".

But speaking in Canberra, he said if Australia embraces the future with confidence and with optimism, with self-belief and a clear plan, then it will succeed as it's never succeeded before.

He laid out his plan to return to government, citing innovation and science, Australian industry and high tech jobs, and getting young people into jobs as vital.

"These are exciting times. But we must embark on these times, embrace these opportunities, meet these challenges, with a plan and we have laid out a clear economic plan to enable us to succeed," he said.

He said his government had set up the stage for strong trade with China and Asia.

Mr Turnbull vowed to re-establish the building industry watchdog if the coalition wins the election - the twice-rejected legislation that triggered the double-dissolution election.

The Australian Building and Construction Commission would restore the rule of law to the construction sector that employs one million Australians, he said.

"It is a vital economic reform and critical to our continued success."

Opposition Leader Bill Shorten said the July 2 election will be about whether there is a fair go country for everyone or just the fortunate few.

Speaking just after Prime Minster Turnbull confirmed the election date, Mr Shorten said Labor is ready with "positive" policies.

Mr Shorten said Australians have a clear choice.

"A choice between Labor's positive plans for the future, and three more years of dysfunction, of dithering and of disappointment."

Key issues Mr Shorten has zeroed in on include schools and education, healthcare, climate change, fairness and job security.

On the question of campaign debates, Mr Shorten said he's happy to turn up "anywhere, anytime" - even if the prime minister didn't show.