By James Grubel

CANBERRA, Oct 14 (Reuters) - Australia's national elections on Nov. 24 will determine the future of the country's military contribution to Iraq and its stance on climate change, but will be fought and won on domestic issues.

Opinion polls suggest conservative Prime Minister John Howard is heading for a thumping defeat, with new workplace laws creating unease among voters and shaping up as the main issue.

But economic management, Howard's age, and the government's decision not to ratify the Kyoto Protocol on climate change, will also be key issues as the centre-left Labor Party, led by Kevin Rudd, attempts to return to power after 11 years in opposition.

"I think the economy and workplace laws are the ones that are really going to make a difference in the key marginal seats," John Warhurst, professor of politics at the Australian National University, told Reuters.

"If the government is going to be saved, it is the economy, plus the advantages of incumbency and the support of the business community on the workplace laws."

Labor needs to win 16 more seats in the 150-seat parliament to take power. Opinion polls in the lead up to the campaign indicate a solid 10 point swing of support toward Labor, which could deliver up to 40 seats if carried through to election day.

Howard, 68, has won four back to back elections and has said this one will be his last. He will hand over to his deputy and Treasurer Peter Costello sometime during the next three-year term if he wins a fifth straight contest.

In announcing the poll on Sunday, Howard said it would be about who had the experience to protect Australia's economy and national security, highlighting his team against the inexperience of Labor.

"This country does not need new leadership, it does not need old leadership, it needs the right leadership," Howard told reporters on Sunday.

Labor's opinion poll support has surged since December 2006, when the party elected Mandarin-speaking former diplomat Kevin Rudd as its leader. Recent polls show voters believe Rudd would make a better prime minister and has more vision than Howard.

"We as a country need to widen our vision," Rudd said on Sunday, adding the Howard government had become stale. "What I offer Australia's people is a plan for action."

LABOR LAWS KEY TO POLL

Howard, a close friend and ally of U.S. President George W. Bush, was one of the first leaders to commit troops to the 2003 war on Iraq. Australia has about 1,500 troops in and around Iraq and Howard has promised they will remain as long as needed.

Howard has also refused to ratify the Kyoto Protocol, saying dramatic cuts in carbon emissions will unfairly hurt Australia's economy, status as the world biggest coal exporter, and heavy reliance on coal for electricity.

Rudd, 50, has built a strong poll lead with promises to withdraw frontline soldiers from Iraq and ratify Kyoto, painting Howard, 18 years his senior, as old and out of touch.

Rudd has also promised to wind back the unpopular workplace laws, known as Work Choices, which the government says have helped create jobs but the unions argue have driven down wages and conditions and made people worry about job security.

The government introduced the new laws to make the workplace more flexible, encourage workers onto individual labour contracts and off trade union-backed awards, and save employers from facing court action when they sack workers.

Monash University analyst Nick Economou said Iraq and climate were unlikely to prompt anyone to change their votes, but voters are nervous about the government's new labor laws.

"They've committed a big error of judgment. That's what's going to bring them down," Economou said.

"It has made people really insecure in what should be a time of prosperity and stability," he said.

Howard will again campaign strongly on his economic management, highlighting 11 years of strong economic growth, rising household wealth, and unemployment at 33-year lows.

He won his fourth term in 2004 by promising to keep interest rates low. But his usual advantage has been somewhat blunted by five interest rate rises since the last election, with markets expecting another rate hike to curb inflationary pressures. ((Editing by Michael Perry, james.grubel@reuters.com; Reuters Messaging: james.grubel.reuters.com@reuters.net, +612 6273 2730))

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