LABOR is making some inroads pegging back the coalition lead according to the first Galaxy poll of the year.

The first Galaxy poll of the year finds voters still overwhelmingly want Kevin Rudd to lead Labor, with little movement in Prime Minister Julia Gillard's popularity stocks, the Herald Sun reports.

The national survey of 1001 people was done on Friday and Saturday - as the fall-out from the Australia Day riot and allegations of political interference unfolded.

The results show on a two-party preferred basis, Labor holds 46 per cent of voter support, while the Coalition enjoys 54 per cent support.

At the time of the last Galaxy poll in October, Labor's two-party preferred vote was stuck at 42 per cent.

Labor's primary vote has climbed from 29 per cent to 34 per cent, while the Coalition has slipped from 51 per cent to 48 per cent. The Greens polled steady at 12 per cent.

The results came despite an ongoing failure to resolve asylum seeker woes and the Prime Minister's backdown on poker machine reform.

Galaxy Research principal David Briggs said the results were still gloomy for the Government, and that Labor's leadership problems were still prominent.

"While the poll suggests Labor is within striking distance of the Coalition, Julia Gillard continues to trail Kevin Rudd as the best choice to lead Labor by a wide margin," he said.

When voters were asked who would be best as Labor Party leader, 52 per cent selected Mr Rudd against 30 per cent for Ms Gillard.

When Workplace Relations Minister Bill Shorten was included, he received 14 per cent support compared with 44 per cent for Mr Rudd and 27 per cent for Ms Gillard.

Read more at the Herald Sun.