Labor's primary vote has climbed seven points to 46 per cent.
In the preferred prime minister measure, 36 per cent of voters would prefer Opposition Leader Kevin Rudd as prime minister.
That is an increase of 11 points on Kim Beazley's last Newspoll result.
However Prime Minister John Howard is still ahead on 39 per cent.
Mr Rudd says his party still has a lot of work to do.
"Labor Party members should take a cold shower when they look at these poll results today," he said.
"I think it represents at this stage a protest vote against Mr Howard, who's increasingly out of touch.