Australia's Labor Prime Minister Kevin Rudd and opposition leader Tony Abbott are meeting in the first televised debate of the election campaign.
The candidates are facing an hour of questioning from a panel of journalists in the capital, Canberra.
The economy and the issue of asylum seekers were the opening discussion points of the debate.
Current opinion polls put Mr Abbott and his Liberal-National coalition in the lead for the 7 September election.
However, Mr Rudd's Labor Party has significantly narrowed its lead since he ousted his predecessor, Julia Gillard, in June.
In his opening comments Mr Rudd said the election was "a clear choice on the economy, on jobs, on how we support families under pressure and how we support education and health".
Mr Abbott said it was not about personalities, but the time for Australians to decide "who can make your future more secure".
He also immediately raised the issue of illegal immigration, saying his coalition would put an end to the large numbers of people arriving in Australia by boat. "No self-respecting country can hand over part of its immigration control programme to people smugglers," he said.
'Stop being evasive'When challenged on his economic plans - which Mr Rudd says contain a A$70bn ($65bn: £42bn) gap - Mr Abbott said voters would "see in good time before polling day exactly how much we're going to spend".
Mr Rudd responded by saying: "Surely four weeks before an election he can stop being evasive" about how the shortfall will be made up.
As with all such debates both men will be trying to avoid a gaffe or slip up that could torpedo a campaign. Ahead in the polls but seen by commentators as a less accomplished debater, the conservative opposition leader Tony Abbot has perhaps more to lose.
Much will depend on the media spin that the two men's advisors manage to whip up afterwards.
It is just two months since Kevin Rudd emerged as prime minister for the second time after ousting his Labor colleague and rival, Julia Gillard.
Now he's in charge the race is much closer. but Mr Rudd is still portraying himself as the underdog.
Sunday's debate, which began at 18:30 local time (08:30 GMT), is the first of three such possible meetings before polling day.
The BBC's Jon Donnison in Sydney says Australian politics are often combative and plain-speaking, so it is likely to be a feisty exchange.
Australia's economy, having largely avoided the global financial crisis, is beginning to struggle, says our correspondent, so will feature heavily.
Labor last week announced an A$200m package to assist the car industry.
Mr Abbott, meanwhile, pledged to repeal Australia's carbon tax at his first campaign event in Brisbane.
Labor has been hit by the loss of two candidates in the past week. Mr Rudd demanded that Geoff Lake, candidate for the safe seat of Hotham in Victoria, withdraw after it emerged he had abused a woman with a disability during a council meeting a decade ago.
Meanwhile the Labor candidate for the Queensland seat of Kennedy, Ken Robertson, stood down from the race after calling Mr Abbott a racist and "very bigoted" in an interview.
He said he was withdrawing "in the interests of ensuring that this matter does not distract from Labor's campaign for a fairer Australia".
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