Anthony Albanese has reacted to One Nation’s dramatic rise in the polls since the last election, admitting that financial pressures underline the political maxim: ‘It’s the economy, stupid.’

The Prime Minister was hit with questions on Monday about the Newspoll finding that One Nation has overtaken the Labor Party on primary votes for the first time in the poll’s history.

He said the huge economic pressures Australians were facing were a big factor in the fracturing of support for the major parties.

“Of course, it is the economy. To you know, paraphrase, ‘it’s the economy, stupid,’’ he said.

“Australians are frustrated, and one of the interesting things about the debate about our budget over recent days or weeks, I haven’t seen anyone go out there and argue in an opinion piece in an editorial that Australia’s current housing systems are working for Australians.

“Now, if you accept that the system’s broken, you’ve got a responsibility to do something about it.”

Mr Albanese maintained that, while controversial, changes to capital gains tax and negative gearing to improve first home buyers’ chance of buying property were the right thing to do.

“I respect the Australian people and the judgments that they make quite clearly, as I said in a speech on Friday, many people feel that the system isn’t working for them, that they’re working for the economy, not the economy working for them,’’ Mr Albanese said.

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“They’re working hard, struggling to save, can’t get their own roof over their head, for example, which was the backdrop of the decisions, hard decisions that we made on the budget that we want to make sure that we put in place mechanisms that do make a difference.

“Not politically easy 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’re seeing, we’re seeing globally occur.”

But asked if Pauline Hanson was fit to be Prime Minister, he dodged the question.

“I vote Labor, so that’s the position that I take, and I will continue to vote Labor for the rest of my life. It’s up to others to determine what way they vote in our great democracy,’’ he said.

On immigration levels, Mr Albanese said he wanted to see an Australia that was united, with social cohesion at the core.

“One that respects people for who they are, but is patriotic about all of us being Australians, and we will reduce the net overseas migration over the next couple of years down to 225,000, we think that’s the right number,’’ he said.

“There was an increase, obviously, once Covid lifted, there was, of course, an increase as Australians came home and as people could enter and leave the country, but I want an Australia that continues to be the best country on earth as well.

Mr Albanese also slammed the decision to target Victorian Premier Jacinta Allan as “a witch” in election posters.

“What worries me is the misogyny that’s involved there. The sexist campaign targeting the Victorian Premier is totally unacceptable and has no place in public life,’’ he said.

Hanson makes history in bombshell poll

Pauline Hanson’s One Nation is beating Anthony Albanese’s Labor Party based on primary votes for the first time in Newspoll history.

As support for the major parties tanks, One Nation has surged to a historic 31 per cent of primary votes, compared to 30 per cent for Labor and 18 per cent for the Coalition.

The new Newspoll, conducted for The Australian, also found however that Labor remains ahead of One Nation and the Liberal Party on a two-party-preferred model.

Labor won the last election, securing a historic 94-seat haul based on a primary vote of just 34.6 per cent.

Senator Hanson, 72, noted on Sunday that she could theoretically lead the country from the Senate if her party won enough lower house seats.

“John Gorton was the prime minister from the Senate for three months before he moved to the lower house,” she said.

Pauline Hanson considers moving to the House of Representatives

The blockbuster result for One Nation has renewed speculation that its leader may leave the Senate to contest a House of Representative seat, a move that would be crucial if she ever wanted to form government.

“I’m yet to determine where I’m actually going to stand, ­whether I will stand for the Senate at the next election, or will I move to a lower house seat,’’ she said on Sunday.

“That is yet to be determined. We’re still about 1½ to two years before the next election, so that will be a decision that I will have a discussion with my team.”

Senator Hanson made the remarks at a BBQ for Ben Roberts-Smith, who is accused of war crimes. He maintains his innocence of all charges.

One Nation winners from CGT budget

One Nation has emerged as the big electoral winner from Treasurer Jim Chalmers’ controversial May 12 budget with One Nation’s primary vote jumping from 24 per cent to 31 per cent.

Since the last election support for One Nation has surged by an extraordinary 24.6 per cent, with Labor’s vote falling a modest 4.6 per cent and the Coalition collapsing by 13.8 per cent.

Minor parties and independents are down 5 per cent and the Greens’ support has dropped by 1.2 per cent.

Liberal Party bin fire

After dumping the party’s first female leader Sussan Ley and dialling up the drama over immigration, Liberal leader Angus Taylor’s personal ratings have improved but the Liberal vote continues to hit the skids sliding another three points since April.

According to the poll, 35 per cent are satisfied with his performance, 45 per cent dissatisfied and 20 per cent uncommitted.

Pauline Hanson’s mop up job

The stunning poll result comes as Pauline Hanson was forced to mop up controversy last week over One Nation’s plan to evict some migrants from homes they have purchased.

The policy left Barnaby Joyce in a tangle on Thursday night after he initially suggested a policy of forced divestment would apply to permanent residents before backtracking and saying it only applied to foreigners living overseas and temporary visa holders.

Permanent residents are not subject to the policy and currently own an estimated 400,000 Australian homes.

But an unrepentant Ms Hanson said it was time to take a tougher line with non-Australian citizens buying property.

“One Nation makes no apologies for prioritising Australians first,” she said.

“If you are a temporary visa holder or a foreign citizen residing overseas, One Nation will give you two years to sell their property to an Australian.

“One Nation would remove the ability for international students, non-permanent residents, and non-Australian citizens from buying future property within Australia.”

Ms Hanson also defended Mr Joyce for backtracking and getting confused over the policy, suggesting it demonstrated honesty.