Australia's prime minister Julia Gillard increases poll lead

Australian prime minister Julia Gillard is on course for an election win in an August 21 vote after support for her Labour Party jumped since it dumped unpopular premier Kevin Rudd in late June, a fresh poll showed today.

Support for Gillard's Labour rose to 55% from 53% in late June, while support for the conservative opposition slipped to 45% from 47%, according to a Newspoll survey in The Australian newspaper.

It also found voters considered Gillard, Australia's first female prime minister, more capable, with 57% saying she would be a better leader, over opposition leader Tony Abbott's 27%.

The poll figures were taken after Gillard negotiated a compromise with big mining firms over a controversial new tax just over two weeks ago.

Labour's fortunes have turned around rapidly since Gillard took over as leader. The party had been seen losing an election before the leadership swap, as voters grew increasingly unhappy with policy errors, particularly on the mining tax and a backflip on climate change.

Today's poll is in slight contrast with a Galaxy survey on Sunday which found Labour with a slim, 52%-48% lead over the opposition.

Financial markets are not expected to react much to the fresh poll numbers given slim differences between the two sides on core economic policy.

The new poll figures also showed a turnaround in the public's perception of Labour's handling of the economy with 42% saying Gillard party was best placed to handle the economy, just ahead of 41% for the opposition.