'I'm ruling it out': Taylor categorically kills off One Nation coalition talk

Opposition leader Angus Taylor says he will not enter a Coalition with Pauline Hanson's One Nation party.

"I'm ruling it out," Mr Taylor told 7.30 on Tuesday night.

"There is no plan to form any kind of coalition with One Nation."

Mr Taylor was adamant that the current Coalition with the National party will not be changing as he again attacked One Nation's policies, as he did last week.

He said their policies would lead the nation to economic ruin.

"One Nation would, as a government, leave us with an eternity of pain," Mr Taylor said.

"They have a grab bag of policies, where even just a small subset of them would take this country into a fiscal crisis, higher inflation, higher interest rates, higher mortgage costs.

"That's not something Australians can afford when we are in the midst of an economic crisis of Labor's creation."

Those comments came despite Mr Taylor saying earlier on Tuesday that his criticism of One Nation wasn't made lightly.

"The speech I gave last week ... 95 per cent of that speech was against Labor and how they're wrecking this country,"  MrTaylor told 2GB.

"I say what I say about One Nation with a heavy heart frankly.

"They do not have a plan for the future of this country. They are a one-person show. They don't have the team."

Mr Taylor said his goal is to remove the Albanese Government from power.

To do so would require a massive turnaround in the fortunes of the Coalition after it suffered its worst election defeat in 70 years, when under Peter Dutton's leadership.

Still Mr Taylor remains optimistic he can defeat Labor at the next federal election.

"There is a plan to do is to get rid of a Labor government that has put us into an economic crisis where Australians are poorer, where taxes are higher ... and young Australians are losing hope of owning a home," Mr Taylor said.

"Australians in small business are losing hope of their dreams with small business as we see the highest rate of insolvencies ever in this country.

"People are losing hope for the future of our country and that's got to change."

'Failing this country'

Pressed on where he might make changes to make Australia more affordable Mr Taylor said he would look to curb government spending on large companies, climate and housing.

"We're seeing this government handing money to big companies, hand over fist," Mr Taylor said.

"We saw that with PsiQuantum ... acompany that's not even based here in Australia.

"We've got a housing bureaucracy that is spending billions and billions and billions of dollars on housing.

"We've got a climate bureaucracy that is spending billions and billions and billions and yet emissions are barely moving.

"These are programs that are failing this country. If we are to have a smaller government, they are programs that can go and should go."

Despite his comments about housing Mr Taylor said he would commit to making housing more affordable.

Mr Taylor went on to blame the government for the rise in interest rates, despite the fact that they are set by the Reserve Bank of Australia.

The RBA has lifted interest rates three times since the start of the year with the current cash rate at 4.35 per cent.

"Affordability is worth spending a moment on because it's what counts," Mr Taylor told 7.30.

"If you're a young home buyer, first home buyer, the thing that matters is whether you can afford to buy a house.

"And the most important factor in that is interest rates. They are too high.

"Labor told us that the era of higher interest rates was over, that they were coming down and they were going to stay down after a cut during the election campaign, and yet they've gone back up."

"We know the critical to keeping interest rates down is to contain inflation, to contain the growth in government, to make sure we have a productive competitive economy and we don't have that under Labor."

Watch 7.30, Mondays to Thursdays 7:30pm on ABC iview and ABC TV