A Newspoll released on Monday morning puts Labor ahead of Prime Minister Malcolm Turnbull’s government as they head into a recalled sitting of parliament.

Mr Turnbull’s double dissolution election looks even more likely after the prime minister refused to make any alterations to his crucial Australian Building and Construction Commission (ABCC) bill.

If the Senate fails to pass the bill, Australia will head to an early election on July 2.

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If that happens, Treasurer Scott Morrison’s May 3 budget will need to play a vital role in changing voters’ minds, with the government trailing just behind in the two-party preferred vote on 49 per cent.

While satisfaction with Mr Turnbull as prime minister has dropped for the fifth consecutive poll, he still remains the country’s preferred leader by a long way on 47 per cent, with Opposition Leader Bill Shorten trailing on 28 per cent.

Voters are clearly concerned with government spending, with 65 per cent saying reducing outlay should be made a priority. This comes as Australia was told it will risk its AAA credit rating if it increases its debt any further.

Almost 40 per cent of respondents want those savings directed toward paying off Australia’s debt.

In good news for the government, 45 per cent of voters believe the Turnbull government is better equipped to reduce spending, compared with just 31 per cent for Mr Shorten’s Labor Party.

The Newspoll was conducted from last Thursday and polled 1628 voters.

An Ipsos/Fairfax poll released on Sunday night also put Labor and the Coalition neck and neck, sharing the two-party preferred vote at 50 per cent a piece.

The poll predicted a three per cent swing against the Coalition, should the election be held now.

Mr Turnbull has given the Senate three weeks to pass the ABCC bill, after which he will request a double dissolution from the governor general.