The opposition is ahead 56-44 on a two-party-preferred basis, the coalition's worst polling performance since September 2018, the survey conducted for The Australian newspaper shows.
As the coronavirus pandemic drags on, Labor has increased its lead since the last poll on December 6 when it was ahead 53-47.
Labor's primary vote is up three points to 41 per cent while the coalition's dropped two points to 34 per cent.
In more bad news for the government, Prime Minister Scott Morrison's net satisfaction rating plummeted 11 points to -19 while Labor Leader Anthony Albanese's rose out of negative figures to zero.
Mr Albanese has also narrowed the gap between his rival for preferred prime minister to just 43-41 in favour of Mr Morrison, from 45-36 at the last poll.
For the first time, more voters surveyed thought Labor was better placed to steer Australia out of the COVID-19 pandemic (33 per cent) compared with the coalition (32 per cent).
The survey of 1526 voters indicated a lift to the Greens' primary vote of one point to 11 per cent while One Nation stayed steady on three per cent.
Support for the independents and minor parties slipped two points to 11 per cent, according to the poll, which was conducted online between January 25 and 28.
A federal election is due to be held by the end of May.