People will return to the polls less than two months after the state election after the Prime Minister called the federal election for May 18.

He said voters had a "clear choice" between the Coalition and Labor's handling of the economy - and in the federal seat of Parkes, incumbent Nationals MP Mark Coulton said the other party's plan for housing taxes, in particular, was "lose-lose".

Mr Coulton has held Parkes since 2007, but is being challenged by Labor's Jack Ayoub and United Australia Party's Petrus Van Der Steen.

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Mr Coulton said Labor's plan to limit negative gearing and double the capital gains tax would hurt more than 5570 people in the electorate.

"If you own your own home, it will be worth less, and if you rent your home, it will cost you more," he said.

"[Labor wants] to hit Australians with $200 billion in new and higher taxes - on incomes, housing, electricity, investment, retirees and family businesses."

But Mr Ayoub said both policies were grandfathered, and he believed it would be "a positive change that will help those Australians looking to buy their first home".

"It will have some effect in the larger centres of [the electorate of] Parkes; however, the policy is mostly aimed at stabilising the boom and bust cycle of the major cities."

On taxes, Mr Van Der Steen said in a statement that the UAP would introduce zonal taxation, so people and companies based 200km or more from a capital city would pay 20 per cent less.

"With 85 per cent of Australian wealth being created in the regions, it's vital we decentralise ... and promote [regional] growth."

On drought and the land, Mr Coulton said his government was "pushing ahead with the $5 billion Future Drought Fund to give farmers ... new tools to prepare for, manage and sustain their businesses through drought".

Mr Ayoub said Labor would establish a farm productivity and sustainable profitability plan on the advice of scientists, economists, researchers and industry leaders.

Mr Van Der Steen said one UAP policy was to "legislate to stop banks foreclosing on property in times of drought" and to "stop the sell-off of our land to foreign powers".

"Chinese Government-owned investment companies now own well over 10 times more of our agricultural land [than three years ago]. This should be concerning to all Australians.

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