Prime Minister Anthony Albanese will set up his bid for a third term with a promise of further expensive cost of living measures to address financial stress fuelling One Nation’s ascension as he expands a program to pay health workers as they study.

However, Labor ministers are downplaying the prospect of a tax on gas exports before a fight at its national conference on the popular proposal, signifying tension in Labor ranks over how aggressively Albanese is pursuing populist causes.

Prime Minister Anthony Albanese addresses the national Labor conference in 2023.Alex Ellinghausen

In a speech to Labor faithful on Thursday that Albanese will use to frame the election’s battle lines, the prime minister will invoke 135 years of Labor tradition on practical responses to boost workers’ living standards rather than “raging against a system … without a plan to fix it”.

Albanese will say that “people have been given every reason to feel like the economy is simply not working for them” as he seeks to boost the government’s political fortunes and meet pessimistic voters where they are.

“That goes deeper than sentiment – it’s a reality people are up against,” he will say, according to an advance copy of his speech, noting he was riding “rough seas” after a series of economic shocks and an oil crisis sparked by the Middle East war.

Read more: PM sets election battle lines with One Nation, pledges cost of living relief