Mark Dodd, Dili – East Timor will go to the polls on August 30 – the second anniversary of its United Nations-brokered referendum – in a historic vote that will mark the transition of the world's newest country to full independence.

The UN-chaired National Council, the territory's de facto parliament, has approved legislation that sets the voting day, preferred electoral system, laws governing the formation of political parties, and the establishment of a national parliament and constitution.

The recommendations will become law when they have been approved by Mr Sergio Vieira de Mello, the head of the UN Transitional Authority in East Timor.

The former Portuguese colony, invaded by Indonesia in 1975, is under UN transitional rule following the the bloody 1999 vote for independence that saw as many as 1,500 people killed. About half of its estimated 800,000 population will be eligible to vote.

The deputy chairman of the committee on political affairs, Mr Agio Pereira, described debate at the National Council session on Thursday as intensive and exhaustive.

Other key decisions included East Timor's first indigenous electoral law, he said. The council agreed to form a democratically elected 88-seat, single-chamber constituent assembly. Its members would include one representative from each of East Timor's 13 districts to be elected by first past-the-post ballot and 75 elected on a national basis using proportional representation.

The elected assembly would then prepare and adopt a constitution within 90 days, which would need to be endorsed by at least 60 assembly members. Decisions on the type of government and the election of a president will be made by parliament.

The Australian section of the International Commission of Jurists has recommended a Westminster-style government, in which the Cabinet consists of elected MPs, rather than a United States-style system, in which the president choses whomever he likes for top posts.

The electoral law stipulates that all registered political parties must put forward women candidates in 30 per cent of "winnable" seats. Mr Pereira said he hoped that this would put women in at least 20 seats in the 88-seat assembly.

A national constitutional commission will be formed to consult East Timorese from all walks of life on the constitution. The commission will comprise members of the National Council's standing committee on political affairs, church, women's and youth groups, and representatives of all political parties.

The new constitution will be proclaimed on December 15, and the constituent assembly will be transformed into the national parliament that day.