Labor's primary vote has plunged to its lowest ever record on the back of its proposed carbon tax.
It has also dealt the Prime Minister a personal blow.
The latest Newspoll survey for The Australian shows primary vote support for the federal government has dropped to 30 per cent from 36 per cent two weeks ago.
That's below the 31 per cent record low when Paul Keating was prime minister in 1993.
The coalition rose four points to 45 per cent.
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Political experts have been anticipating a big plunge after Prime Minister Julia Gillard went back on commitments made during the election campaign and announced plans to introduce a carbon price by mid-2012.
Her lead over Opposition Leader Tony Abbott as preferred prime minister has now halved to 11 points, while voter satisfaction in her performance is also down.
On a two-party preferred basis, Labor is now bringing up the rear after tying with the coalition at 50 per cent a fortnight ago.
It now trails 46 to 54.
"It's fairly easy to stoke fears and Tony Abbott is a master of it," said Ms Gillard, who is in Washington, DC.
"But Australians will come to see that pricing carbon is the right way of dealing with climate change and the challenges of transforming our economy."
Ms Gillard said: "We will meet Tony Abbott's scare campaign with reason and facts."
