Labor cuts Liberal lead in Braddon: poll

The race between the coalition and Labor has narrowed ahead of the Braddon by-election, new polling commissioned by The Australia Institute finds.

Federal Labor is making inroads into the coalition's lead in the upcoming by-election in the knife-edge Tasmanian seat of Braddon, new polling shows.

The ReachTel survey of 700 voters for left-leaning think-tank The Australia Institute recorded a 3.3 per cent rise since June in Labor's primary vote to 36.3 per cent, while the Liberals dropped 4.1 per cent to 42.9 per cent.

The poll, taken ahead of the July 28 poll, also found nearly three in five voters want company tax increased or kept the same, while close to seven in 10 support keeping Sunday and public holiday penalty rates.