Hundreds of delegates have converged on Adelaide for the three-day conference, which sets out the party's agenda and policy stances.
Opening the event, Anthony Albanese said it was up to Labor to show the difference its government was making to people's lives, rather than just airing grievances.
"People's genuine frustrations deserve a practical response, not just an emotional one," he 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 that should be addressed.
"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."
Mr Albanese also used the speech to hit out at One Nation, which has polled above Labor in some recent voter surveys.
"All those attention-seeking culture wars imported from overseas, all those trips around the world to talk Australia down, cannot disguise the fact that none of them have anything new or anything positive to offer our country," he said.
The prime minister also announced the creation of a Fair Work Court aimed at resolving workplace disputes.
While the 50th Labor conference is not expected to be confrontational, several major policy issues will be on the agenda for debate.
Among them will be artificial intelligence protections, gas taxes, gambling reform and the party's support for the Palestinian cause.
Attendees at the conference will agree on party positions, but it will be up to Labor's parliamentary team to determine how, and when, the measures are implemented.
Treasurer Jim Chalmers told the conference Labor was the only remaining mainstream party, adding that 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."
Incoming Labor national president Kate Ellis said the mandate from voters at the 2025 election needed to be met.
"We face a time when there is a massive political realignment happening, both globally and at home," she said.
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.
Mr Albanese used the address to announce 10 more areas of study in health professions will be eligible for payments of $338.60 a week for students doing practical placements
From July 2027, the payments will be extended for physiotherapy, clinical psychology, speech pathology, paramedics, audiology, pharmacy and podiatry.
"This is one of those reforms where it is hard to believe that it didn't already exist," he said.
