Australia Prime Minister Kevin Rudd called Tony Abbott a liar for not telling the truth about the real state of the economy, carbon tax and asylum seekers.

Rudd says Abbott has been lying to Australians about the state of the economy, the impact of carbon pricing and his ability to turn back asylum seeker boats. Rudd addressed the rest of the nation on his first major interview on television as prime minister since the ouster of Julia Gillard.

Rudd issued a challenge to Abbott to participate in a moderated debate to tackle current issues of Abbott's choosing. Rudd said it's time Australians will get to decide if Abbott's policies have what it takes to work if ever he wins the elections.

Kevin Rudd made an earlier promise never to lead the Australian Labor party again. Now that he has broken that promise, Rudd said it was former Prime Minister Julia Gillard who left the leadership after bringing the caucus to a vote.

Rudd was also not willing to let the Labor party lose the 2013 election. He says the government and the Labor Party was moving towards defeat. Rudd does not want to just stand by and do nothing while Tony Abbott was just waiting in the wings to "rip apart" what the government has worked hard for the last six years.

Tony Abbott's spokesperson sent word that the opposition leader will accept the challenge of Rudd to a debate once the election date has been set.

Neutralising Abbott

Earlier today, PM Kevin Rudd spoke to several foreign ambassadors and diplomats as the U.S. celebrates its Independence Day. Rudd told world ambassadors that Australia is ready to be a friend to everyone including Indonesia, China and U.S.

In a move to neutralise Tony Abbott's criticisms against the government, Rudd invited Abbott to security briefings with the Australian Security Intelligence Organisation and Australian Secret Intelligence Service. The Cabinet members and the Secretary of the Prime Minister will also attend the security meetings.

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