The federal government will face a voting public in September that no longer thinks it is trustworthy.
A new survey has found Australia is bucking a global trend of people increasingly trusting both their country's government and business leaders.
The Edelman Trust Barometer for 2013 found trust improved across the four institutions of government, business, non-governmental organisations and the media in all 26 countries it monitors annually, apart from Australia - where they all fell.
Edelman, a public relations firm, believes the results in terms of government were due to broken promises, a much publicised leadership ballot and continued speculation about a slowing economy in 2012, leading to a crisis of leadership.
The poll of 1000 Australians, in the global survey of 31,000 respondents, found the credibility of government leaders had dropped four percentage points over the past year to just 30 per cent.
Furthermore, only 32 per cent trust government leaders to tell the truth, down from 38 per cent last year, with over half (52 per cent) blaming poor performance and incompetence as the primary reason for trusting government less over the past year.
Australian business also fared badly, with 46 per cent not trusting corporate leaders to tell the truth and only 32 per cent believing a chief executive of a company is a credible source of information.
"Australian business and government currently has a leadership vacuum that engagement, integrity and purpose should fill," Edelman Australia chief executive Michelle Hutton said, releasing the report on Wednesday.
"Re-engaging an otherwise ambivalent public has to start with genuine open dialogue."
The overall Edelman Trust Index for Australia declined to 39 points in 2013 from 40 points in 2012.
In comparison, its index for the UK rose to 43 points from 35 points, in the US it increased to 45 points from 40 points and in Japan it was up to 35 points from 32 points.