Labor jumps in popularity poll

Australia's Labor Government has seen a rebound in popularity from record lows after Prime Minister Julia Gillard floated the prospect of compensation for a controversial tax aimed at cutting carbon emissions.

Labor led the Coalition by 51 per cent to 49 per cent, a Newspoll in the Australian showed, putting her one-seat Government ahead for the first time since November.

Gillard is preferred as leader over Tony Abbott by 50 per cent to 31 per cent.