THE Rudd Government's bungled home insulation program is costing it crucial support among NSW voters, who are turning to Opposition Leader Tony Abbott.
An exclusive Sun-Herald/Taverner poll shows Labor is now level-pegging with the Coalition.
On a two-party preferred basis, both sides have 50 per cent of the vote - a drop of almost 3 percentage points on Labor's election-winning 52.7 per cent in 2007.
The results come after a horrific run for the government in which it failed to shake off Coalition criticism and growing community concern about the safety of its home insulation scheme.
The poll of 609 NSW voters, conducted on Wednesday and Thursday nights, shows Mr Abbott has succeeded where his predecessors failed.
Mr Abbott has shored up his own voter base while convincing swinging, and some Labor, voters to listen to his message.
But Prime Minister Kevin Rudd remains the preferred choice for prime minister - 53 per cent say he is the better man for the top job while 40 per cent favour Mr Abbott.
It is a drop in popularity for Mr Rudd. At his best former opposition leader Malcolm Turnbull could convince only 22 per cent of people that he would be the better PM, according to Newspoll.
Pollster Philip Mitchell-Taverner said people were surveyed during an ''atypical'' period when several issues were rattling Labor.
The ALP was also having to cope with a ''tenacious'' Mr Abbott, Mr Mitchell-Taverner said.
''Malcolm Turnbull never had such an opportunity as the Rudd halo stayed so strong for so long and Mr Turnbull was never able to generate any viable negative emotions about the government,'' Mr Mitchell-Taverner said.
''Times dramatically changed in such a short time and the swinging voters noticed. Mr Abbott must consider himself to be very lucky, coming into leadership when he did.''
Mr Abbott might be basking in the sunshine of the customary honeymoon period enjoyed by new opposition leaders but Labor strategists believe the figures just reflect the public response to a new leader with an aggressive media presence. The strategists are still banking on a Labor victory later this year.
Mr Rudd acknowledged yesterday the insulation program would cost the government in the polls but promised to fix the problems.
Labor still wants to get its emissions trading scheme up, but is prepared to go to an election with a broader message based on soon-to-be-revealed changes to the health system. It will also play its trump card - taking the plaudits for getting Australia through the global financial crisis.
Today's results show a majority of those polled (59 per cent) believe the government's economic stimulus package was justified.
The Coalition's message about the size of the debt taken on to finance that stimulus is resonating only with its own supporters - 43 per cent of people think Australia is now in too much debt, while 47 per cent think it is manageable.
The poll also shows both Mr Rudd and Mr Abbott are the most popular choices to lead their parties.
Close to half - 49 per cent - of those polled said Mr Rudd was more appealing, compared to 36 per cent who preferred Deputy Prime Minister Julia Gillard.
Only 15 per cent of people said they would be more likely to vote for Labor if Ms Gillard was leader, while 23 per cent said they would be less likely to vote Labor.
Treasury spokesman Joe Hockey fared better, with 39 per cent of people saying they preferred him to lead the Coalition.
But Mr Abbott is still ahead of the field, with 45 per cent of people saying he is the better leader for the Liberal Party.
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