The latest opinion poll has Kevin Rudd streaking away from Julia Gillard as preferred Labor leader.
The Galaxy Poll shows 52% of voters would prefer Mr Rudd led the ALP rather than Ms Gillard.
It's bad news for the Prime Minister, coming after the controversial resignation of a staff member over violent protests on Australia Day.
It also follows Ms Gillard's back-down on Poker machines, and her decision to introduce a Carbon tax.