The coalition says it is open to working with Pauline Hanson to oust Labor from power as the major parties blame migration and the economy for the rise of One Nation.
Recent polling has shown the anti-immigration party pulling ahead of Labor as the most popular party in the nation, while the coalition has sunk to a distant third in their standing with voters.
Pointing to economic issues as a factor behind the rise in populism, Prime Minister Anthony Albanese has also promised to reduce the nation's migrant intake.
Frontbencher Murray Watt said the government was responding to the concerns of voters through measures in the May budget, such as tax reform.
"We know that there's a lot of Australians doing it tough out there, and they're sending a message to the major parties that they want us to do better, they want things to change," he told Nine's Today program on Tuesday.