Prime Minister Julia Gillard on Tuesday announced the withdrawal of most Australian troops from Afghanistan by the middle of next year, while rolling out her future plan of Canberra's role in the war-torn country.
In a speech in Canberra, Gillard said Australian troops would begin pulling out this year and most would be home by the end of 2013 -- an election year in the country.
Currently, nearly 130,000 troops of the North Atlantic Treaty Organisation are serving in Afghanistan from 50 contributing nations, including Australia. Most of them are due to leave Afghanistan by the end of 2014.
In her announcement ahead of a key NATO conference on Afghanistan in Chicago, Gillard said Australia was prepared to pay its "fair share" to keep Afghanistan on track.
She said the Afghanistan summit would be a key milestone.
"A crucial point: when the international forces will be able to move to a supporting role across all of Afghanistan," she told the Australian Strategic Policy Institute.
"I also expect President (Hamid) Karzai to make an announcement on transition in Oruzgan and other provinces in the coming months, including which areas of Oruzgan will begin the process first," she said.
"Once this process begins, it would take 12 to 18 months to pull the troops out. We would have completed our training and mentoring mission with the 4th Brigade," Gillard said, adding, "We will no longer be conducting routine frontline operations with the Afghan national security forces".
Australia has nearly 1,550 troops serving in Afghanistan, mainly in the Oruzgan region. Since 2001, 32 Australian soldiers have been killed in the country.
"The Australian-led provincial reconstruction team will have completed its work. And the majority of our troops would have returned home," she said.
She said Australia's ongoing effort in Afghanistan would include niche training for Afghan security forces, support for the Afghan National Army Officer Academy, training and support for local police and a limited Special Forces contribution.
"I will go to Chicago prepared for Australia to pay our fair share," she said.
Gillard said she hoped to sign a partnership agreement with President Karzai in Chicago.
"This will set out Australia's enduring partnership with Afghanistan in development -- along with security, trade and investment, as well as cultural and people-to-people links," she said.
The agreement would be backed up by a commitment to boost Australia's aid to Afghanistan and maintain this level of funding in subsequent years.
"Strengthening the capacity of the Afghan government, economy and institutions will be essential to ensuring that the gains made to date are not reversed," Gillard said.