The man who benefited most from the return of Kevin Rudd as prime minister still believes Labor can win the September 7 election.
The latest Newspoll shows Labor heading for an election loss, with Mr Rudd in a worse position now than when he was dumped as Labor leader in 2010, while Opposition Leader Tony Abbott's popularity is climbing.
Chris Bowen, who was elevated to treasurer when Mr Rudd returned to the top job, said on Monday the election was always going to "close and tough", and pointed out the campaign was only at the halfway point.
"I believe with our positive plans for the future - contrasted with Mr Abbott's cuts which will become clearer and clearer over coming weeks - that we will be competitive this election," Mr Bowen told reporters in Brisbane.
"I believe Kevin Rudd can win this election, we will be fighting very hard to earn every last vote because there is a lot at stake in this election."
He reiterated the economy was at risk of recession should the coalition win the election and undertake massive spending cuts.
"When you cut and embark on austerity programs, then you see an impact on economic activity," he said.
"Massive cuts to government expenditure could lead to a recession, it's a statement of fact."
Mr Bowen said most other countries call the global financial crisis the great recession.
"Why don't we call it the great recession? Because we didn't have one, because government action together with unions and business avoided a recession in Australia."
