Hundreds of delegates have converged on Adelaide for the ALP's three-day national conference, which sets out the party's agenda and policy stances.
As well as setting out a vision for the party's future, Mr Albanese made the case for why Labor was best placed to alleviate the concerns of voters, as polls show faith in major parties declining.
While Pauline Hanson was not mentioned by name in the prime minister's speech, her presence loomed large over the conference as One Nation continues its rise in the polls.
"People's genuine frustrations deserve a practical response, not just an emotional one," Mr Albanese said on Thursday.
"You can go a long way in politics, for a long time, by raging against a system that you are part of, without a plan to fix it ... that doesn't build anything."
The prime minister stressed the need to tackle long-term challenges as well as dealing with daily issues.
"Our focus remains squarely on helping with the cost of living, on the practical measures that matter to people and make a positive difference to their lives," he said.
"That is how we demonstrate to Australians that their hard work will pay off."
The prime minister announced paid practical placements for students would be expanded to 10 allied health areas, including paramedics, audiologists and occupational therapists.
The $338.60 a week payment will come into effect from July 2027.
A federal industrial court was also announced, which will be aimed at resolving workplace disputes such as underpayment.
Housing Minister Claire O'Neil said while Labor had always known the coalition to be its main opposition, the threat of One Nation was more "pernicious".
"One Nation is trying to use the language of working people to sell an agenda that works against them," she said.
"When the pressure's on, that mask slips."
Treasurer Jim Chalmers told the conference Labor was the only remaining mainstream party, adding ongoing reform was critical for success with voters.
"We are the last ones standing in the sensible centre of Australian politics, but we aren't standing still," he said.
Tax changes in the budget, aimed at making housing more affordable, were an example.
"It's how we address the very real and legitimate concerns people have about their place in our economy, democracy and society," he said.
"The Liberals, Nationals and One Nation would be the worst possible coalition of callous and chaos."
South Australian Premier Peter Malinauskas welcomed Labor members while making digs at One Nation MP Barnaby Joyce yelling at his dog during a recent TV interview.
"In an erratic world filled with ill discipline and division, we've been reminded this week of that time-honoured political truth: if you can't govern your dog, you can't govern the country," he said.
While economic items were on the agenda during day one of the 50th Labor conference, all amendments passed unanimously.
Debate centred on economic issues as well as climate change and energy.
Delegates agreed to mandate superannuation for all workers under 18 as well as setting up an AI taskforce for workplace protection.
Debate on a gas tax failed to materialise on the conference floor, despite a viral campaign calling for a 25 per cent tax on exports of the resource.
Day one of the conference concluded with the announcement of a scholarship set up in memory of former Labor strategist Tim Picton.
Mr Picton died in January aged 36 after an alleged one-punch attack outside a Perth nightclub.
His wife Priya Brown and daughter Charlotte were on stage for the announcement of the scholarship for Labor campaign directors.
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