After more than 11 years in power, Prime Minister John Howard is now fighting for his political life as opinion polls continue to point to a Labor victory.
Australia's conservative government remains well behind the opposition in Australia's most prestigious poll.
An AC Nielsen poll released on the even of the election, showed Kevin Rudd's Labor leading by 14 points on preferences.
Howard is trying to gain back Labor's year-long lead in the final days of the campaign trail, by continuing to highlight his perceived strength over Rudd in economic management.
He says the coalition has steered Australia to 16 years of economic expansion and has kept unemployment at 33-year lows.
But the message has been marred by rising interest rates, which now stands at 6.75 percent. The latest quarter point rate increase two weeks ago is the first ever in the middle of an election campaign. It, together with five other rate rises, have shattered Mr Howard’s promise to keep interest rates at record lows.
A report by Taverner Research shows an estimated 32% of households are paying off a mortgage, with many of them concentrated in key marginal seats around capital cities.
Even though only 21% of those voters polled across Victoria and NSW blamed the Government for the last six interest rate rises, more than half who have switched their vote to Labor say rising interest rates are a key factor in their decision.