Australian Prime Minister Malcolm Turnbull said on Tuesday the country would probably go to a general election on July 2, after Parliament voted down a key labor reform bill.

Turnbull told reporters the government would function as normal until May 3, when it will deliver its budget.

"My intention is, an appropriate time after the budget has been delivered, I will be asking the governor-general to dissolve both houses of the Parliament for an election which I expect to be held on 2 July," Turnbull said.