The Howard Government's re-election chances have been dealt a major blow, with a new poll finding voters believe Labor is better able to manage the economy.
The Government has traditional enjoyed a massive lead over Labor on who is best able to manage the economy.
But an IPSOS Mackay poll has found more voters believe federal Labor would be the better economic manager by 39 to 36, with 25 per cent undecided.
Deputy leader Julia Gillard has told Ten's Meet The Press program it's very good new for Labor.
A second poll makes clear the recent interest rate rise is to blame for the coalition loss of support, with 24 per cent saying they are more likely to vote Labor as a result of the rate rise.