We can win the next election: PM

The coalition can win the next federal election but only by showing the public it can deal with problems in a serious manner, Tony Abbott has told colleagues.

The prime minister admitted to the joint party room meeting in Canberra on Tuesday the last few weeks had been character testing for the government.

But it passed, he said, to applause.

It is only the coalition that can deal with the problems the country faces, he argued.

And as the public sees that, the coalition's re-election will become more likely, he said.

The prime minister described the government as a "serious" one with serious intent.

The latest intergenerational report will not only show the scale of the budget challenge facing the government but also the progress already been made.