Former deputy prime minister Brian Howe says the Labor Party has become closed, insular and needs reform.
It comes as a new lobby group, Open Labor, which aims to renew the party launched in Melbourne on Sunday.
The former politician, who served as deputy PM under Bob Hawke and Paul Keating between 1991 and 1995, said "it would not be easy" but the party needed to develop a different culture and become more open and broad to be successful.
Open Labor was founded after the ALP's primary vote slumped to 34 per cent at the September federal election, with the group aiming to make the party more open, brave and democratic.
Group founder James Button said the group bridged the gap between Labor supporters and the small amount of party members.
"We want to open the party up, more debates, diversity and a more democratic party," Mr Button said.
He said the group will look at ideas and policies, party reform and building the network of the party.
Former premiers Steve Bracks and John Cain are among those backing the group.
"It is clear the Australian Labor Party needs to renew and strengthen itself in order to serve the community well in the decades ahead," Mr Bracks said.
Open Labor, has 400 members so far with plans to expand to Sydney and other parts of the country.
