Poll shows huge increase in Labor support under Kevin Rudd

FIRST ON 7: The first national poll since Kevin Rudd's return as Prime Minister shows a huge surge in Labor support.

An exclusive 7News/ReachTEL poll shows Labor has not only improved its primary vote- but Kevin Rudd leads Tony Abbott as preferred Prime Minister.

The poll shows Labor's primary vote has soared nine points to 38 per cent.

Labor's gained six points to narrow the two party preferred vote.

The coalition has lost ground but still leads.

Asked who would make a better Prime Minister, 52 per cent of people say Kevin Rudd.

While 44 percent of voters say they agree with the decision to replace Julia Gillard with Kevin Rudd, almost the same number disagree.

While these results will give Labor hope, it's not all good news.

Only 30 per cent of voters believe Kevin Rudd can lead Labor to election victory. 57 per cent say it can't be done.

The PM is under growing pressure to name the new election date with September now looking unlikely.

PM expected to dump carbon tax
Prime Minister Kevin Rudd is expected to dump the controversial carbon tax in favour of an emissions trading scheme.

News Limited reports that the carbon tax, which is due to rise by $1.15 per tonne to $24.15 next week, will top the agenda when he convenes his first cabinet meeting on Monday.

"This is a priority issue," a source close to Mr Rudd told News Limited.

Mr Rudd is widely expected to move forward the end of the fixed carbon price period by a year to 2014 - easing pressure on business, but lowering the money reaped by the scheme.

The new prime minister is due to name his cabinet on Friday, which will include Senator Penny Wong, Science Minister Don Farrell and Defence Minister Stephen Smith - who's planning to retire from politics at the election.