The federal opposition has seized on a gaffe by Foreign Minister Kevin Rudd to step up pressure on Julia Gillard's leadership, as business and industry reignite their attack on the government's carbon tax.
Returning from a trip to the United States amid heightened speculation about the ALP leadership, Mr Rudd told ABC Radio: "I'm a very happy little vegemite being prime minister ... being foreign minister of Australia.
"You've caught me getting off the plane, jet lag," he added.
Mr Rudd said he "fully supported the prime minister", but did not use Julia Gillard's name.
The gaffe came as a quarterly Newspoll study showed the coalition leading Labor in all mainland states for the first time since the August 2010 federal election, and Opposition Leader Tony Abbott took his carbon tax attack to the independent-held seat of Lyne.
Mr Abbott told reporters in the NSW town of Wauchope on Tuesday that Mr Rudd's slip-up said a lot about where his head was at.
"It's something that is on Kevin Rudd's mind," he said.
"I think that every day since his political assassination Kevin Rudd has thought about going back into the top job and I think this is a real problem for the Labor party."
Mr Abbott suspected that being back in Australia Mr Rudd would "be doing a lot of talking to his colleagues".
Labor strategist Bruce Hawker on Monday argued that a leadership change could give the party a "big circuit breaker".
Government frontbencher Craig Emerson said the ALP should avoid the "NSW merry-go-round model" when it came to the leadership.
"We have a very strong and determined leader who is determined to govern in the national interest and yes, that does mean from time to time you'll take a hit in the polls," he told Sky News.
Mr Abbott is visiting the NSW mid-north coast seat on Lyne held by Independent Rob Oakeshott, who helped deliver minority government to Labor last year and is a supporter of carbon pricing.
Mr Oakeshott stopped regular meetings with Mr Abbott after his electorate was targeted by the coalition during the NSW state election in March, but the federal opposition leader told reporters he planned to "catch up" with the MP on Tuesday afternoon.
The Newspoll research showed Labor would lose half of its seats in NSW - including four held by ministers - if a federal election was held now.
The party would also suffer heavy losses in Queensland, with Kevin Rudd the only MP certain to retain his seat.
Up to five MPs in Victoria could lose their seats, but it would remain Labor's strongest state.
The research also showed women voters were turning off Ms Gillard.
Mr Abbott said the prime minister had a "competence problem".
Meanwhile, the coalition's renewed attack on the carbon tax was backed by two key industry groups - the Australian Coal Association and Business Council of Australia - in their submissions to a parliamentary inquiry.
Association chairman John Pegler said the tax would make mines uncompetitive and could not come at a worse time in terms of global economic conditions.
The council said Treasury modelling made wrong assumptions and the laws did not include "prudent and responsible safeguards to address a number of key risks".
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