Opinion polling Saturday showed Prime Minister Julia Gillard's Labor government regaining enough support to beat Tony Abbott's conservatives in next week's parliamentary election, dpa reported.
Labor leads the Liberal-led coalition 53 to 47 per cent in an opinion poll published in The Sydney Morning Herald.
"I'm running against the full might of an incumbent government," Abbott said in response to the survey showing Labor breaking a two-week deadlock. "I've said all along I'd be the underdog."
The conservatives held office for 11 years until Kevin Rudd swept Labor back into office at the 2007 election. Gillard toppled Rudd two months ago because she feared his administration would become the first in 79 years to lose power after only one term at the August 21 election.
"I think we're heading towards one of the closest, tightest races in Australia's history," Gillard said. "I think this will be a photo finish."
Abbott needs to pick up 17 seats in the 150-member House of Representatives to wrest power from a government that Gillard admitted had "lost its way" under Rudd's stewardship.
To entice Rudd into supporting her campaign, Gillard promised him a senior cabinet post should she retain government.