Prime Minister Anthony Albanese dodges questions over who he would prefer to take on at the next election

Prime Minister Anthony Albanese has refused to say whether he would rather go up against Pauline Hanson or Angus Taylor at the next federal election, despite polls indicating a potential showdown with the One Nation leader.

Albanese this morning told reporters it was a matter for voters and said he remained conscious of the rise of populism both domestically and globally.

“I respect the Australian people, and the judgments that they make,” he said.

“Many people feel that the system isn’t working for them, that they’re working for the economy, not the economy working for them.

“We want to make sure that we put in place mechanisms that do make a difference, not political urgency decisions, but the right decisions, and that if governments don’t respond to that, there’ll be a continued rise in populism, be it of the right or the left.

“It’s something that we are very conscious of, and I’m conscious of, will continue to focus on what we need to do as a government to make a practical difference for people’s lives.”

The prime minister said the economy was pushing people into the extremes on both the left and the right.

“To paraphrase: it’s the economy, stupid. It’s always the economy that sets the parameters for debate,” he said, referencing a key message used by Bill Clinton’s campaign team before the US election in 1992.

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‘Pauline for PM?’: Key question hangs over One Nation despite meteoric rise

The polls have shown Hanson to be the alternative prime minister.

Last week’s Australian Financial Review/Redbridge Group/Accent Research poll revealed primary support for One Nation had jumped four percentage points to 31 per cent since the budget.

Yesterday, Newspoll followed suit, handing Hanson 31 per cent of the primary vote ahead of Labor on 30 per cent and the Coalition on 18 per cent, meaning less than half of those surveyed backed a major party.

In both polls, Labor was still leading on a two-party-preferred basis against either party.

Hanson was among the enthusiastic supporters at a Brisbane rally supporting alleged war criminal Ben Roberts-Smith yesterday.

“I can’t stress enough, I’ve worn his shoes. I faced a criminal trial,” she told the crowd.

The One Nation Leader was quick to wade into political combat targeting the proposed changes to the capital gains tax, saying the government was wrong to think tax incentives had caused the housing problem.

“Lack of housing is due to mass migration they’ve allowed to come into the country,” she said.

Yesterday, Albanese responded to her remarks and said the nation relied on migrants.

“One thing that you won’t hear from me is drawing a distinction between Australians and migrants who are permanent residents,” he said.

“Permanent residents are people who’ve made a commitment to Australia to be permanent residents.

“Go into a hospital here, see what happens if all the permanent residents go. See if you have a nurse, an orderly, someone who’s cleaning, someone who’s looking after those health facilities.”

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One Nation wants to deny non-citizens the right to own a property in Australia with a muddled Barnaby Joyce last week wrongly asserting the ban would also apply to permanent residents, which he later corrected.

Shadow treasurer, Tim Wilson, told Sky News: “One Nation’s agenda is simply to evict people from their homes and expel them out of the country who are engaging in law-abiding activity and lawful property owners.”

But the Coalition’s gone after non-citizens too.

Opposition Leader Angus Taylor used his budget reply speech last month to announce he would deny them welfare, including Jobseeker, family benefits and access to the NDIS.

Some moderate Liberals worry about making the distinction between Australians and permanent residents.

They believe they only diminish their own brand if they attempt to out-do Pauline Hanson at her own game.