Growing speculation suggests that Australian Prime Minister Julia Gillard may be removed from her position by her party before the end of the year. Senior ministers showed their support for her on Friday following a difficult start to 2012. Despite media reports hinting at a potential leadership challenge from Foreign Minister Kevin Rudd, Defense Minister Stephen Smith and other cabinet ministers have backed Gillard. Many political analysts now believe that Gillard is unlikely to lead the party into the next election in the second half of 2013, with a potential move against her more likely in the latter part of this year. Monash University political analyst Nick Economou stated, "MPs are starting to think the boat is going down, and they're starting to panic," adding, "I don't think she'll lead the Labor Party to the next election." The initial major opinion polls for 2012 revealed that government backing was stuck at historically low levels, while online bookmakers Sportsbet announced on Friday that the odds of Rudd becoming leader by the end of the year had decreased to $1.20 for a $1.00 bet. "I am a firm supporter of the Prime Minister. I believe she is handling a very difficult situation very well," Smith stated in an interview with Australian television from Brussels. He was joined by Climate Change Minister Greg Combet, Communications Minister Stephen Conroy, and Regional Affairs Minister Simon Crean, who have all urged an end to party discord, with Crean stating that Rudd was not a team player. Despite being seen as working independently by his Labor colleagues and being removed as prime minister in a party room coup due to struggles in passing reforms, polls indicate that Rudd remains popular with voters. The government's dilemma is compounded by the fact that Gillard relies on support from two independents and the Greens, and any leadership change could potentially result in a change of government or an early election if the new leader is unable to secure similar support. This means that a leadership spill could lead to a change in government, with the conservative opposition vowing to repeal a new 30 percent mining tax and a carbon tax set to take effect on July 1. Despite rumors of discontent, Gillard remains focused on implementing effective policies and dismisses media speculation. Gillard ended 2011 on a strong note, with an increase in her parliamentary majority due to an opposition lawmaker defecting to become parliamentary speaker. However, she has had a difficult start to 2012. She lost the backing of an independent in January due to breaking a promise to alter gambling laws, and also had a staff member resign after their involvement in a protest against Opposition Leader Tony Abbott that posed a security risk. This has put the government back at square one, only holding a one seat majority in parliament and with one lawmaker facing scrutiny for potentially using union funds to pay for escorts. Despite this, there is hope for Gillard if the central bank reduces interest rates as predicted. Australian Financial Review political editor Laura Tingle noted a shift in support away from Gillard in the past week, although many Labor members still hold animosity towards Rudd. Tingle wrote on Friday that there has been a significant shift in attitude towards Julia Gillard, with a silent but strong threat. Economou mentioned that any action against Gillard would probably not happen until July, after the carbon tax and mining tax take effect. This timing would give Labor the opportunity to present their budget in May and focus on campaigning for the Queensland state election on March 24, where polls indicate that Labor may lose. Economou expressed concern that the situation could become critical after the carbon tax is implemented, and if there is no improvement by then, Gillard may be forced to step down.