Leaders go head-to-head in first debate

Prime Minister Kevin Rudd has pledged to legislate for same sex marriage within 100 days of a re-elected Labor government, while Opposition Leader Tony Abbott has promised 'real change' in government during the first leaders debate of the election campaign.

But attention following the debate focused on claims Mr Rudd was reading from notes, breaking the rules agreed upon by both sides.

The Prime Minister was shown holding papers before the debate, and appeared to look down at them for reference on several occasions.

Rule 12 of the official debate agreement read, "The leaders may have a pen and paper on the lectern and no other documentation or props,''

Debate moderator failed to notice during the event, but admitted the PM had notes in the debate wrap-up.

The Prime Minister's office has released a statement on the scandal, saying he did not realise he was breaking the rules.

"There was absolutely no intention than to do anything other than comply with the rules," the statement said.

"The PM arrived at the lecture in full view of the audience and the panel and there were no objections raised at any time.

"We have always believed this rule was aimed at preventing the use of props and the PM is happy to debate Abbott at any time during the election campaign without notes.

"Including on channel seven."

The Liberal party says the incident shows Mr Rudd is not up to the job.

"Mr Rudd said this election is about trust and the first thing he did was cheat," Shadow Finance Minister Andrew Robb said.

"He broke the agreed rules about no notes. I think Tony Abbott looked like a leader and Kevin Rudd look a reader."

Has your vote changed after the debate?

Debate fails to excite

Both leaders threw barbs throughout the debate, but neither was able to land a killer blow.

Prime Minister Kevin Rudd stood up for his party's record in government, saying Australia had weathered the global financial crisis better than almost any other nation, and that his party was better prepared to lead the nation during the end of the mining boom.

Mr Abbott pledged his party would provide stable government and get the budget under control after six years of Labor's 'waste and mismanagement', and leadership chaos.

Making his closing remarks, Mr Abbott said there are no limits on what Australians can achieve.

The Opposition Leader pledged to build a stronger economy, scrap carbon tax, balance the budget, build roads and stop the boats.

7News viewer vote
Over 24,000 Australians had their say in the 7News Viewer Vote overnight - and they overwhelmingly named Tony Abbott the winner.

68% of respondents said Mr Abbott won the debate, while 72% said he would be Australia's next Prime Minister.

The result was even more conclusive than voters' pre-debate predictions - 55% of voters thought Mr Abbott would win.

The economy is still the most important issue for voters, with 38% nominating it as their key issue, followed by health on 19%, leadership on 16%, and immigration and education on 14%.

In closing, Mr Abbott said it was time for a 'real change' in government, and asked the Australian people to give his party a clear majority.

Mr Rudd said it had been a privelege to address the nation tonight.

The PM said it was time for 'a new way', and an end to the 'wall-to-wall negativity' in politics.

Mr Rudd said there are four things Australia needs after the upcoming election: new industries, better schools, investment in the health system and government 'forging new way into future'.

Several key issues were discussed during the one hour debate:

Same sex marriage: On same sex marriage, Opposition Leader Tony Abbott says it is 'an important issue, but not the most important issue'.

Mr Abbott has declined an invitation to say he would allow a conscience vote on the issue within his party, saying it would be an issue for a future party room.

Mr Rudd came out strong in his support for same sex marriage, saying he would legislate for marriage equality 'within 100 days of a re-elected Labor government'.

Mr Rudd was unequivocal in his support for same sex marriage, saying it is the thoroughly decent thing to do.

Climate change: On climate change, Mr Abbott has repeated his party's pledge to reduce carbon emissions by five per cent by the year 2020.

Mr Abbott said he would scrap the carbon tax, but still achieve his emissions reductions targets in 'cost-effective ways.'

Mr Abbott would not confirm that his policy would remain as it is, if international policies change.

Citing damage to the Great Barrier Reef, Mr Rudd said addressing climate change is "essential to our nation's future."

"We will be doing a disservice to our kids and grandkids if we do not act," he said, before throwing a barb at the Opposition Leader.

"We've never doubted the science unlike some," he said.

Mr Rudd said his party's climate change policies are working, and that emissions are 'stopping increasing' since the carbon tax was introduced.

Aged care: On aged care, both leaders have dodged questions on reforming the aged care industry, as recommended by the Productivity Commission.

Mr Abbott said aged care workers shouldn't have to spend as much time doing paperwork as they do, while Mr Rudd said the National Broadband Network would greatly aid the industry.

Both leaders declined opportunities to say they would implement the Productivity Commission's recommendations.

Second Sydney airport: Opposition leader Tony Abbott has pledged to make a decision on a second Sydney airport in his first, before switching the subject to his pledge to build the WestConnex motorway.

Mr Abbott said better infrastructure around Sydney would reduce stress on the airport.

Mr Rudd has deferred the question of a second airport to his Infrastructure Minister, Anthony Albanese.

Mr Rudd appeared to dodge the question, only reminding Sydneysiders that their airport is not the only one in the country.

Taxes and the economy: Mr Rudd says his government is a lower taxing administration than the previous coalition government.

Mr Rudd points out that Labor's tax policy 'is a strong one' for Australian families.

"Our company tax cut is designed to increase jobs and help people," he says.

When asked which policies Mr Rudd will cut, or alternatively, which taxes he will raise, the PM failed to name any specific programs.

Mr Rudd said his party had already released an economic statement, which details his plans for the future.

However, the PM could not nominate which specific programs he would cut.

"We will always keep everything in mind when managing the budget", he said.

Mr Abbott has spruiked his centrepiece tax policy - a 1.5% decrease in the company tax rate.

The Opposition leader also pointed out his broadband policy comes in $60bn cheaper than Labor's alternative plan, and said he had already pledged to cut the schoolkids bonus.

"We just can't afford it", he said. "I'm being honest and upfront."

Asylum seekers: On the issue of boats, and Kevin Rudd has refused to admit he got it wrong when he relaxed Howard-era boarder protection laws.

Mr Rudd said he was acting on his 'democratic mandate' to change the laws, but concedes that his changes has unintended consequences - which is why his party has reverted to much tougher laws.

Mr Abbott insists only his party can be trusted to stop the boats. He says the coalition 'invented off-shore processing', and that his party would salvage what it can from Labor's hardline new policy.

Raising the GST The leaders are now battling it out on Mr Rudd's claim that a Tony Abbott-led government will raise the GST.

Mr Abbott has called Mr Rudd's claims a 'cheap scare campaign', categorically ruling out raising the GST in his next term.

Mr Rudd says the GST will be a part of the coalition's tax review, therefore making it subject to change.

Opening pitches: Prime Minister Kevin Rudd and Opposition Leader Tony Abbott have made their opening debate pitches, looking to the key issue of the campaign so far – cost of living.

Mr Rudd said Australians are enjoying record low interest rates and relatively low unemployment under his government.

Mr Rudd said the economy is undergoing a great change with the end of the resources boom, and his party – the party he says saw Australia through the global financial crisis – is best suited to navigate this change.

Mr Abbott said it’s time for a change of government,

“It’s not about Mr Rudd, it’s not about me, it’s about you”, he said.

Mr Abbott also pledged to ‘keep Australians’ jobs safe’ and to stop the boats.

“If you want a New Way you've got to have a new Government”, he said.