Canberra: Australian Prime Minster Kevin Rudd's ruling Labor Party suffered a large loss of support in weekend elections in Australia's two smallest states, in a result which could disrupt his plans for sweeping health reforms.
Voter support dropped more than 7 percent for longstanding Labor governments in South Australia and Tasmania, signalling a revival for the conservative Liberal Party ahead of national elections, due in late 2010.
If the shift away from Labor was replicated across the country at a national election, Rudd would be swept from power.
However, Finance Minister Lindsay Tanner said local issues dominated the two state elections, where voters turned against long serving governments. In contrast, Rudd's national government has been in office only two years and four months.
"I don't think there's much in the way of federal implications," Tanner told Australian television.
"Inevitably, governments that are long-term governments lose a bit of skin along the way. But we'll just see what the final details are and obviously we always learn lessons from every election."
Rudd remains firm favourite to win a second term in office at elections due later this year.
A poll trend shows he holds a 7.2 percent lead over the opposition on the crucial two-party vote, once minor party votes are distributed under Australia's complex preferential electoral system.
Bureau Report
First Published: Sunday, March 21, 2010, 11:14