"It's on. A few moments ago I saw the governor-general and asked that she dissolve this parliament and call the federal election for September 7," Rudd said in an email to Labor party members.
"Australians now face a choice...And the choice couldn't be starker," Rudd was quoted as saying by the Australian Broadcasting Corporation.
Earlier, Rudd flew in to Canberra this afternoon to visit the Governor-General and formally ask Quentin Bryce to issue the writs for a poll.
"The time has come for the Australian people to decide on our nation's future," he told the media after arriving back at Parliament House.
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He now faces a conservative opposition led by Tony Abbott, a former minister in Howard's government, in the election which had to be held before November 30.
Labor will be vying to retain government after six years in office, dominated by leadership struggles and debate over its handling of multiple issues of climate change, asylum seekers, and the global financial crisis.