The Federal Labor Party maintains a strong lead in the latest Morgan Poll with only one week to go until the budget is released.

According to the poll on federal voting intention, the Coalition’s support is down slightly on a two-party-preferred basis, with 46.5 per cent, while Labor is at 53.5 per cent.

If a Federal Election were held today, Labor would win easily, the results showed.

• Frightening budget deficit prediction
• ‘Happier, more confident’ – and off to the polls
• Childcare deal good for parents, says PM

Labor is now favoured in four states with a two-party preferred lead in South Australia, Victoria, Tasmania and New South Wales.

According to the poll, primary confidence was up by .5 points to 89 points this week, with 45 per cent of Australians saying Australia was “heading in the wrong direction” and 34 per cent of them unchanged saying Australia was “heading in the right direction”.

The results come as Australians commemorated the 100th anniversary of the Anzac landing at Gallipoli, and also while the Indonesian government executed Australian Bali Nine drug smugglers Andrew Chan and Myuran Sukumaran.

Next week’s Federal Budget presents the government with the first chance to introduce policies to tackle these key indicators of consumer confidence and business confidence, Roy Morgan CEO Michele Levine said.

“Comprehensive reform of Australia’s IR system to allow employers greater flexibility to hire workers is a key plank of reducing Australia’s high level of unemployment and under-employment – which will in turn boost both consumer confidence and business confidence,” Ms Levine said.