Prime Minister Scott Morrison has told his parliamentary colleagues they have "a mountain to climb" if they want to avoid a Labor victory at the next election.
Mr Morrison, a former Tourism Australia marketeer who replaced Malcolm Turnbull as leader last month, says the country has enjoyed strong jobs and economic growth under coalition rule.
And yet, the government has lost its 40th consecutive Newspoll and would shed 30 lower house seats if the results were replicated at the next federal poll.
"Bill Shorten thinks he's already there," Mr Morrison told a joint coalition partyroom meeting on Tuesday.
"The Australian people are coming quickly to the realisation of what a Shorten government would look like and they recoil.
"The events of the past few weeks have been very difficult for us all, that's done, we all know that.
"We have a mountain to climb together."
A federal election is due by May 18.
The prime minister identified a battle over power prices as a key policy fight with Labor.
"I plan to win the next election and I'm not going to win this next election by fighting it on Bill Shorten's ground," Mr Morrison told 2GB radio before the party meeting.
"Bill Shorten wants to have an ideological debate about climate. I want to have a practical debate about reducing electricity prices."
The prime minister said his government was comfortable reaching its Paris climate targets at a canter, reducing emissions to 26-28 per cent on 2005 levels by 2030.
He warned Labor would seek to reduce carbon emissions by 45 per cent.
"That's the difference between a low-alcohol beer, at about two to three per cent, and a full glass of single malt whisky," Mr Morrison said.
Despite the bitter leadership battle, Mr Morrison said he could campaign on the government's record.
"Over the last five years, our government, the government we've all been part of, has been delivering strong economic management," he said.
"It's been keeping Australians safe, and it's our job to ensure we bring all Australians together."
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