UPDATE 1-Australian PM set to call poll for late August

(Adds PM quotes, media comment on election, details)

By Michael Perry

CANBERRA, July 17 (Reuters) - Australian Prime Minister Julia Gillard is set to call an election on Saturday for late August, with the poll set to be fought over policies on economic management, climate and border protection.

Television footage showed Gillard's plane landing in Canberra after she had flown in from her home in the southern city of Melbourne to announce the election.

An official at the prime minister's office said Gillard would meet Governor-General Quentin Bryce at 1030 a.m. (0030 GMT), when she is expected to seek permission to call a poll.

"It's the right of every Australian to choose their prime minister," Gillard said on Friday, hinting an election was imminent.

Australia's first female prime minister was appointed after a June 24 Labor party coup that saw her topple elected prime minister Kevin Rudd.

The Labor government was facing electoral defeat after just one term in office before Gillard was appointed, but she has since resurrected voter support to put Labor in a narrow lead in opinion polls. Conservative opposition leader Tony Abbott needs to win only nine seats from the government to take office.

Australia's robust economy, which dodged recession in 2009 and emerged strong from the global financial crisis, will be key to the 2010 election. And Gillard has said she will seek re-election on a platform of creating jobs.

But while the government has said it will return a budget surplus by 2013, opinion polls show voters view the opposition as better economic managers, despite Labor steering the economy through the global financial crisis and avoiding recession.

The opposition has also vowed to return to a budget surplus and keep a cap on government spending.

"Racing for the centre," said the headline of a story in The Australian newspaper comparing Gillard and Abbott.

Yet, voters will be given stark choices:

* Gillard plans to introduce a 30 percent mining tax, raising A$10.5 billion ($9.12 billion) from 2012, and Abbott has vowed to dump it.

* Gillard believes a carbon price to fight climate change is inevitable, with a emissions trading scheme possibly brought in after 2012-13, Abbott does not.

* Gillard has proposed a possible East Timor regional asylum processing centre to stop boatpeople arriving in Australia, Abbott plans to reopen Pacific island detention camps.

"Gillard's moment of truth," said the frontpage headline of The Sydney Morning Herald newspaper on Saturday.

Newspaper's editorial did not endorse either Labor or the Liberal-National opposition, but the Sydney Morning Herald called Gillard the "hollow woman" who in three weeks as leader has given little indication of where she would take Australia.

"Voters deserve to pass judgment not just on her as prime minister, but on the tumultuous events that saw her grab the job...," said the Herald.

While voters will be given policy choices, they will also face two contrasting personalities in Abbott and Gillard.

Abbott is a pugnacious and socially conservative Catholic, who once trained for the priesthood, and is opposed to same sex marriages and abortions.

Gillard in contrast does not believe in God, is unmarried but has a long-time partner, and is childless.

But both Gillard and Abbott are highly skilled, intelligent politicians, whose campaign skills may prove the key to who wins the election. (Editing by Ed Davies)