The outcome of the 2013 election, with some micro-party senators elected on minuscule votes, was an embarrassment for Australian democracy, Prime Minister Malcolm Turnbull says.
And, he said, Labor's policies, which it will take to the next election, could slow or even halt Australia's transition to a successful 21st-century economy.
Addressing the NSW Liberal Party faithful, the prime minister said what Labor proposed with its policy on reducing negative gearing tax breaks would have the inevitable consequence of reducing investment.
In the leadup to the election to be held later this year, the government is moving to change senate voting to limit the ability of micro-party candidates with tiny first-preference votes to be elected through secret preference swap deals.
Mr Turnbull said the 2013 senate election, which resulted in a record 18 cross-benchers, was really an embarrassment for Australian democracy.
"To have people elected through back-room preference whispering deals, elected on a tiny percentage of votes, was a disgrace," he told the NSW Liberal Party state council meeting at Tumbi Umbi on the NSW central coast.
Mr Turnbull said there had been speculation the change might benefit one side or the other but the only beneficiaries would be voters who could decide where their preferences went.
The prime minister was scathing of the opposition, especially its policy to wind back negative gearing tax breaks, reducing he ability to offset investment losses against personal income tax.
"It is calculated to slow down, to obstruct, to even stop our successful transition to a diverse, successful 21st-century economy," he said.
Mr Turnbull foreshadowed a return to the "pub test" that, he said, played such a key part in the success of the Howard coalition government, elected 20 years ago this month.
He said that was a watershed moment and at the heart of it was John Howard's appreciation of what Australians would regard as fair and reasonable in the national interest. He termed it the pub test.
"On every tough call, you had to earn community support, you had to make your case compellingly, you had to win the public trust," he said.
Mr Turnbull said his government was upfront about the challenges and the choices and explained plainly and directly why changes and reforms were needed to improve the lives of Australians.
"Respecting the people who put us into Parliament is our first obligation. Respecting their intelligence is the principal thing we have to undertake if we want to win their trust and hold it," he said.