Prime Minister Tony Abbott is hopeful of clearing "one or two barnacles" by the end of the year.
Mr Abbott told the coalition joint party meeting it had been a difficult and sometimes tumultuous year.
But the tumult was all "external to the government", which had been stable and competent unlike the past six years under Labor.
"There are one or two barnacles still on the ship but by Christmas they will have been dealt with," Mr Abbott told colleagues in Canberra.
He wasn't referring to his colleagues though, but policy barnacles.
While not naming any, the government still faces a Senate block of its university fee deregulation, the GP co-payment and changes to welfare programs.
The coalition trails Labor in published opinion polls as parliament is due to wrap up for the year on December 4.
Mr Abbott said coalition MPs should be satisfied with the first year of government and optimistic about the next 12-18 months, which would see dividends from this year's work.
Cause for optimism included the faster-than-expected rollout of the national broadband network and $50 billion in roads spending.
Mr Abbott said the coalition could win the Victorian state election on Saturday because it would be a referendum on union corruption, particularly within the construction union which he described as a "criminal organisation".
A number of MPs told the meeting that the coalition needed to be more aggressive in its criticism of Labor, especially its poor budget management.
