Support for Labor has surged to its highest level since the 2010 election, although the Coalition retains a narrow lead over the Government after preferences.

The latest Newspoll, published in today's The Australian newspaper, shows voter support for Labor has jumped six points to 38 per cent since early December, compared with a two-point drop for the Coalition.

After preferences, the Coalition's eight-point lead has been whittled back to just two points - 51 per cent to 49 per cent.

The results of the first Newspoll of this year have buoyed Labor's spirits at the start of the election year, although Finance Minister Penny Wong is playing down the figures.

"There's only one poll that ever counts, and that's the election," Senator Wong told ABC News 24.

"That's decided not on you and I having a discussion about polling, it's decided on who people think has got the head and the heart to run the country, and who's got the economic plans for Australia's future."

The survey was carried out after Labor ditched its promise of a budget surplus this financial year, something Treasurer Wayne Swan announced a week before Christmas.

Newspoll chief executive officer Martin O'Shannessy says the broken promise does not seem to have hurt Labor.

"Clearly most people from our polls didn't think the surplus was achievable and really didn't think it was important," he told AM.

"We're heading into the election year and we can expect the numbers to stay pretty close from here on in."

Liberal frontbencher Greg Hunt concedes it will be a close fought battle to win the election, although he says voters will face a clear choice when casting their ballot.

"It was always going to be tough, and I think that is the history of Australian elections," he told Sky News.

"The choice is really clear: the choice is between a budget which has been blown - programs such as pink batts, school halls, a general inability to manage - and a higher vision for Australia of resilience, of opportunity, of living within your means.

"The way to deal with this year I think is to recognise that it will be tough. There will be massive new spending programs from the ALP now that the budget's blown [and] there will be major new taxpayer-funded advertising campaigns.

"Our alternative is to live within our means and to give people that sense of possibility in their lives, and that'll be the choice."

Labor frontbencher Craig Emerson agrees that there is a clear difference between the approach of the major parties, adding that voters seem to be backing Labor's vision.

"If I can take anything out of it at the beginning of the new year, that people do seem to accept that there is a contrast here between a Government that is taking... the right decisions for Australia in the 21st century, recognising the needs of a modern Australia, and perhaps an alternative which is looking back to some sort of yesteryear," he told Sky News.

Despite recording a six-point bounce in Labor's primary vote, Prime Minister Julia Gillard's personal satisfaction rating increased only two points to 38 per cent.

That compares with Opposition Leader Tony Abbott's personal satisfaction rating of 29 per cent.

More people are dissatisfied than satisfied with the performance of both leaders, with Ms Gillard recording a voter dissatisfaction rating of 49 per cent, while Tony Abbott is on 58 per cent.