The opposition is leading the Liberal-National coalition by 53 per cent to 47 per cent on a two-party preferred basis, a Newspoll published in The Australian on Monday showed.
If realised, the coalition could lose 10 seats at the May 21 election.
Yet both parties are treading lightly around the poll results as Labor campaign spokesman Jason Clare warned they were wrong about the 2019 election.
"We need to win seats, not polls, we need to win people's votes all across the country and we're going to," he told ABC Radio National on Monday.
"It's going to be a massive effort from (Labor) over the course of the next three weeks, to win the trust and support of the Australian people."
But the election was still a choice between the status quo and an opposition with no economic plan, coalition campaign spokeswoman Anne Ruston said.
She claimed key Labor policies such as extending the Pharmaceutical Benefits Scheme and manufacturing opportunities copied the Liberal approach.
"The interesting thing about much of the announcement that we saw from the Labor Party ... they are policies that are already in effect and well under way that have been put in place by the coalition," she told ABC News Breakfast.
Asked if it was time for a change of government, the Newspoll of 1538 voters taken between April 27 and 30 found 56 per cent agreed and 44 per cent said the coalition should be returned.
But 45 per cent of respondents believe Mr Morrison would make the better prime minister, against 39 per cent for Mr Albanese.
A Resolve poll of 1408 voters published in Nine newspapers on Monday closely mirrored the Newspoll result, finding Labor leading on a two-party basis at 54-46.
Mr Morrison was ahead on the preferred prime minister measure at 39 per cent to 33 per cent.
At Labor's campaign launch in Perth on Sunday, Mr Albanese revealed a higher medicines price cut of $12.50.
Labor hoped its A Better Future-themed campaign launch on Sunday would provide some momentum after Mr Albanese spent a week in COVID-19 isolation.
The launch included new policies on first home purchasing, manufacturing and electric vehicles, as well as dealing with the issue of gender pay equity and fixing problems in aged care and child care.
Meanwhile, the coalition announced an extra 50,000 older Australians would get access to the Commonwealth Seniors Health Card if the Morrison government is re-elected.
A day after Labor leader Anthony Albanese accused him of neglecting older Australians, Prime Minister Scott Morrison will announce an increase in the singles income test threshold - from $57,761 to around $90,000 - from July 1 this year to broaden access to the concession card.
The couples threshold will also increase from $92,416 to $144,000.
At the commonwealth level, all cardholders are eligible for cheaper medications and health care and may also be entitled to state, territory and local government savings, like discounted rates, electricity and gas bills, ambulance, dental, eye care, recreation and public transport.
Senator Ruston said the commitment would build on the $525 million plan to reduce the safety net threshold for PBS medications, including a cut in the price of medications by $10 per script from January 1 next year.
Mr Morrison started Monday in western Sydney where he attended Eid prayers in the marginal Parramatta seat with Liberal candidate Maria Kovacic.
Former prime minister Kevin Rudd attended the same prayers with Labor's candidate Andrew Charlton.
Mr Albanese is attending the traditional Labour Day march in Brisbane.