Prime Minister Malcolm Turnbull has strengthened the chances of an early election, with both houses recalled next month to debate a potential double dissolution trigger.

What is a double dissolution? It allows an elected government that has legislation blocked by the senate to call an election

All senate seats are up for grabs

If the government still can't pass the laws after the election, it can call a joint sitting, where the two houses of Parliament sit together.

Mr Turnbull will bring back both houses of Parliament for an extraordinary sitting in April to deal with industrial relations legislation, and says he will call a double dissolution election to be held on July 2 if the bills are not passed.

He called a snap media conference in his Canberra parliamentary courtyard this morning to make the announcement.

The Prime Minister said he would also bring forward the federal budget by one week to May 3, saying he had informed his Cabinet colleagues shortly before addressing the media.

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

"The restoration of the ABCC [Australian Building and Construction Commission] is a critical economic reform. The time for playing games is over."

Under the existing schedule, the House of Representatives was set for an extended break until May 10, when the budget was due to be handed down.

Now both houses will be sent back to Canberra on April 18 to deal with the ABCC legislation and the registered organisations bill.

If the bills are rejected by the Senate during the three-week sitting period, Mr Turnbull is adamant he will call a double dissolution election.

Look back at the reaction to the Prime Minister's announcement on our blog.

He said the budget would be handed down on May 3 regardless of the outcome.

Coalition MPs held a party room meeting by teleconference following the announcement, to discuss the logistics of bringing back Parliament.

Opposition Leader Bill Shorten criticised the announcement, saying Mr Turnbull was putting his own future ahead of the country's.

Mr Shorten said Mr Turnbull was in "full panic mode" after failing to deliver on economic leadership.

"Labor will not get distracted by Mr Turnbull's games," he said.

"If he wants Parliament to sit on April 18, we will turn up."

Mr Shorten said his party was "not afraid" of a double dissolution.

Greens leader Richard Di Natale said his party would prefer to see the introduction of a "broad-based anti-corruption watchdog at a federal level".

Senator Di Natale said that his party's proposal would deal with corruption, stating that the Coalition's legislation was an attempt to go after one group within the union movement.

Deputy Prime Minister Barnaby Joyce said Mr Turnbull's announcement should come as no surprise.

"We have been ready for a July 2 election because we have been ready for any election this year. The closer you get the more you have to prepare for it," he said.

"We have been basically in campaign mode, making sure that people clearly understand our message, for quite some time."

Where do the crossbenchers stand?

In February, crossbench senators Jacqui Lambie, Glenn Lazarus and John Madigan sided with Labor and the Greens to send the ABCC legislation to the Education and Employment Committee.

Senators for and against the IR bills FOR Family First's Bob Day



AGAINST Independent John Madigan

Independent Jacqui Lambie

Independent Glenn Lazarus

MAYBE Independent Nick Xenophon (has been broadly supportive in the past)

Palmer United Party's Dio Wang

Motoring Enthusiast Party's Ricky Muir

Liberal Democrat's David Leyonjhelm

Fellow senators Nick Xenophon, Bob Day, David Leyonhjelm and Ricky Muir supported the Coalition.

The Government needs six of the eight crossbenchers to pass the bill through the Senate.

Family First senator Bob Day is in favour of the bill, while independents John Madigan, Glenn Lazarus and Jacqui Lambie are against.

Senators Dio Wang, Ricky Muir, Glenn Lazarus and David Leyonjhelm are yet to firm up their position.

Senator Xenophon said he would support a second reading of the bill, but wanted to move a series of amendments.

He spoke to the media today, saying "if you thought last week was ugly in the Senate, you ain't seen nothing yet".

"It's a nifty and cunning manoeuvre on the part of the PM but I suspect it will cause fireworks in the Senate from April 18," he said.

Senator Leyonhjelm today described the Prime Minister's announcement as "an ambush".

Employment Minister Michaelia Cash told the ABC she would continue negotiating with the crossbench to pass the bills.

"I will be negotiating, as I have always done, in good faith with the crossbenchers," she said.

"Our intent is to see these bills passed because they are good policy … I will negotiate in good faith but I'm not about to tolerate amendments just for amendments' sake. These bills must be passed."

Senator Cash said the Senate was "in a state of paralysis, in particular when it comes to this legislation".