The poll result, published in The Australian newspaper, is a reversal of the parties' positions two weeks ago, when the coalition held a 52-48 lead.
It is the first time Labor has led the Newspoll since the August 21 federal election.
Prime Minister Julia Gillard's approval rating improved five points to 46 per cent - the first time in six weeks that figure has risen - while 37 per cent of those polled said they were dissatisfied (down four points) and 17 per cent were undecided (down one point).
Opposition leader Tony Abbott's approval rating slipped two points to 42 per cent, with his dissatisfaction rating up three points to 45 per cent. Voters who were undecided went down a point to 13 per cent.
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Ms Gillard is the clear leader as preferred prime minister, with 54 per cent approval (up five points) to Mr Abbott's 31 per cent (down three points).
On the issue of the National Broadband Network (NBN), 42 per cent of voters said the NBN's future should be decided only after a cost benefit analysis is completed.
Only 23 per cent said the NBN should go ahead without a cost benefit analysis, 19 per cent said it should not go ahead at all in its present form and 16 per cent were uncommitted.
The poll of 1200 voters from around Australia was taken from phone interviews conducted last Friday to Sunday.
