Labor's senior figures are projecting confidence the party can overcome One Nation's surge, while acknowledging the economic frustrations driving voters towards the populist right.
Prime Minister Anthony Albanese has declared he is not "spooked" by the challenges facing Labor and denied he had sought to soothe the nerves of MPs fearful of a mid-term slump.
Meanwhile, Treasurer Jim Chalmers has warned the federal government cannot simply hope the far right "goes away or implodes", urging progressives not to "mock" or "talk down" to voters attracted to the One Nation message.
In an address to the Australia Institute, Jim Chalmers said Labor needed to assess what was driving voters to One Nation. (ABC News: Matt Roberts)
The political challenge for Labor has intensified as high inflation and four interest rate rises this year added to financial pressures on households and businesses.
Earlier on Tuesday, Mr Albanese told his Labor colleagues the party would once again "kick with the wind in the fourth quarter" and prevail over its political opponents when it mattered.
It was the same AFL metaphor he deployed to calm caucus jitters about Labor's chances leading up to the last election.
Mr Albanese claimed the Greens, One Nation and Coalition were now fighting for the "fringes" of politics, while Labor's policies were aimed at "long-term investment for the future".
The prime minister later said he was not "spooked" by the 24-hour news cycle driving pressure on Labor to respond to poor polling, One Nation and speculation about the next election in 2028.
"What I am doing is, we act as an orderly government, we are not halfway through this (term)," he told Afternoon Briefing.
Don't wait for One Nation to fade
In a speech to the Australia Institute, Mr Chalmers said One Nation's political momentum was unlikely to disappear quickly and acknowledged Labor must address the economic frustrations driving voters toward the party.
"Nobody expects polls to change much any time soon — it would be more surprising if they did,"
he said.
"Same goes for consumer confidence."
Mr Chalmers said economic pressures had "shifted the ground" under Australians and made them feel "disconnected from opportunity" and "disregarded" as change happened around them.
"All of this is then fed and fuelled, monetised, politicised, and catastrophised by algorithmic rage bait," he said.
Mr Chalmers said One Nation had been the "most obvious beneficiary" of this, but argued Labor must fight against the idea it was preferable to go back to a "more nostalgic version of the world".
Treasurer Jim Chalmers warned economic pressure and rapid change is driving voters toward One Nation. (ABC News: Joel Wilson)
"We have all the facts to push back on this, but facts don't beat feelings," he said.
"When a significant swathe of our fellow Australians find that message of returning to an idealised version of the good old days appealing — we shouldn't turn on them.
"Our role as progressives is not to scold those who see appeal in that message. It's not to mock them or 'cancel' them or talk down to them."
But Mr Chalmers also argued progressive parties had contributed to their own political difficulties by becoming associated with defending existing institutions and economic arrangements.
"Perhaps a key mistake made by parties of the left is that in their defence of democracy and institutions they've also inadvertently become the party of the status quo," he said.
He said Labor's tax and housing reforms were central to demonstrating it could deliver economic change.
Albanese says 'focus' is on Australians
Despite One Nation's consistently high polling this year, Mr Albanese said he was focused on the "needs of Australians".
"We need to make sure we address immediate issues such as cost-of-living pressures, which are out there, such as the need to get inflation down but do so in a way that builds strength in our economy," he said.
Senator Pauline Hanson earlier took aim at Prime Minister Anthony Albanese's economic record. (ABC News: Adam Kennedy)
Mr Albanese said in that time Australians would have to decide whether One Nation was best placed to solve their issues.
"I understand that people are under financial pressure, we live in very turbulent times, they are angry,"
he said.
"The question for people to ask is are [One Nation] capable of government, or would they make the situation which many people find difficult … better or worse."
Meanwhile, One Nation leader Pauline Hanson took aim at the Albanese government's economic record and said recent policy backdowns, like delaying the Australian Tax Office's ban on credit card payments, had hurt the business community.
"Too many people in this government have never run a business," she told the Australian Chamber of Commerce and Industry (ACCI) conference in Canberra.
"Yet, they're very confident telling people who do run businesses how to do it.
"We now have a treasurer with no private sector experience, and his Labor government thinks it knows better than you how to run your business."