AKIPRESS.COM - Australia will hold an early election in July if the Senate fails to break a deadlock and pass two labour bills.

The Senate has rejected bills put forward by the lower house that aim to re-establish a construction industry watchdog and regulate union management, reports BBC.

PM Malcolm Turnbull has now asked the governor-general to recall both houses of parliament from recess on 19 April to deal with the measures.

If the bills do not pass, he will initiate a rare "double dissolution".

"The time has come for the Senate to recognise its responsibilities and help advance our economic plans, rather than standing in the way," Mr Turnbull said.

"This was the fifth review the bills have undergone.

He said the reforms were "critical" and that "the time for playing games is over".

Mr Turnbull is also bringing the government's budget announcement forward to 3 May.