A poll by Essential Research found that 36% of respondents thought the mining industry ads on the dangers of the RSPT were more believable than Canberra’s ads spruiking the proposal, according to the Australian.

A few months ago the federal Labor party looked unstoppable but yesterday’s Nielsen poll placed the Coalition ahead 53-47 on a two-party preferred basis.

Prime Minister Kevin Rudd conceded those results on an election day would mean he would lose office.

But whether the government will significantly back down or modify the RSPT is a different matter, as many critics argue the government cannot afford to backflip after doing so on many previous policies, such as its Carbon Pollution Reduction Scheme.

There is also the possibility the government is losing popularity on other issues, such as its refugee policy or the failed home insulation program.

The government remains committed to defending its tax proposal with Treasurer Wayne Swan reaffirming it will not be intimidated by the mining industry on ABC TV's Four Corners last night.