Labor insists the next election will be close despite new polls showing a surge in support for the coalition under Prime Minister Malcolm Turnbull.
But his predecessor Tony Abbott is making waves, casting doubt on new Treasurer Scott Morrison's account that he warned his office about a potential leadership challenge.
The first Newspoll since Mr Turnbull toppled Mr Abbott in a Liberal party room contest gives the coalition a 51-49 two-party lead over Labor - the best result since April 2014.
Mr Turnbull is the preferred prime minister with 55 per cent of voters compared with the 21 per cent who back Labor leader Bill Shorten.
The Morgan poll showed the coalition ahead 55-45, with Labor's primary vote dropping to a three-year low of 29.5 per cent.
Shadow treasurer Chris Bowen, who helped reinstall Kevin Rudd in 2013, said he was familiar with such a "blush of newness".
"The next election will be a close contest and we've got to fight for every seat," he said.
He rejected any suggestion of a Labor leadership change.
Consumer confidence has also lifted with the ANZ/Roy Morgan index rising 8.7 per cent.
But not all is smooth sailing.
Mr Abbott, in his first detailed comments since the coup, dismissed Mr Morrison's claim of a pre-coup warning.
Mr Morrison on Friday told 2GB radio he informed Mr Abbott's office before the challenge by Mr Turnbull that "things were febrile" and they should be on high alert.
"Scott never warned anyone, certainly he never warned me," Mr Abbott told News Corp.
"I spoke to him on Friday - not a hint of a warning, so I'm afraid Scott badly misled people."
Mr Morrison has so far declined to respond.
Meanwhile, Trade Minister Andrew Robb has let slip the possibility of an early election while speaking on ABC radio.
"We've got just a few months before the very important election," he said.
Labor leader Bill Shorten said his party was prepared for an election.
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