Labor frontbencher Jim Chalmers is seriously considering a tilt at the Labor leadership in competition with Anthony Albanese.

Key points: Jim Chalmers is from Labor's right faction, meaning Tanya Plibersek could remain deputy leader if he were to be successful

Ms Plibersek withdrew from the leadership contest on Monday

Mr Chalmers would need to win a leadership ballot and receive endorsement from Labor's national executive to run

The 41-year-old frontbencher from Queensland is not as well-known as Mr Albanese, but he would represent a generational change for a party facing three more years in opposition.

Mr Chalmers has served as Shadow Finance Minister since 2016, but some within the party believe he is not as closely tied to some of Labor's unpopular economic policies as Shadow Treasurer, Chris Bowen.

Unlike Mr Albanese, Mr Chalmers is from the party's right faction, which means there is a chance Tanya Plibersek could carry on as deputy leader should he be successful.

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Ms Plibersek withdrew from the leadership contest on Monday afternoon, meaning the party will almost certainly be led by a man.

"I'm considering it," Mr Chalmers told the Q&A program last night.

"I don't think it's unreasonable that a few of us take some time to work out what we want to do — remember we were hoping to be forming a cabinet this week.

"I want to play a substantial role in rebuilding our electoral fortunes, a rebuilding of our policies up to the next election."

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Leader would need to win membership vote

If Mr Chalmers and Mr Albanese are both endorsed as candidates at a meeting of Labor's national executive on Wednesday, then they would also need to convince party members in a leadership ballot.

Mr Albanese is a well-known figure and won the membership vote in 2013 against Bill Shorten, who will remain opposition leader until this process is finalised.

But Mr Chalmers or other potential candidates would have 20 days to campaign and boost their profile among party faithful.

Mr Chalmers also represents Queensland, a state where the Labor party performed poorly and failed to win a seat north of the Brisbane River.

But Mr Albanese has been a leadership contender for much longer than Mr Chalmers and told 7.30 last night that he is the best person to do the job.

"I'm someone who can walk into a pub in Hughenden, or walk into a boardroom in George Street, Sydney, and have a discussion with people that is based on mutual respect and on dealing pretty frankly with people.

"I think what you see is what you get with me."

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Both agree policy change is needed

Mr Chalmers and Mr Albanese both agree that Labor needs to reconsider its policy platform to restore trust with voters, including the contentious franking credits policy.

"I think the issue with the franking credits policy was that it impacted on some people who had made arrangements on the basis of the existing laws, and they felt as though we were changing the rules midstream," Mr Albanese said.

"I think there are issues that need re-examining."

Mr Chalmers did not specify which policies needed to be dropped, but did acknowledge some were electorally unpopular.

"I'm not going to pretend that we don't need to give consideration to all of these policies," he said.

"The Australian people did not support us at the election, that is self-evident.

"So we go back to the drawing board. We rebuild, renew and refresh."