BBC News - Australian PM sets out Afghan exit plan
Australia has some 1,550 troops serving in Afghanistan, mainly in the Uruzgan region.
Since 2001, a total of 32 Australian soldiers have been killed in the country, according to Australian media.
The new timeline would likely see most of the troops back home before the election next year.
Ms Gillard's minority administration has been slipping in popularity and some observers say Labor could be heading for defeat at the polls.