Senior Labor figures Greg Combet and Penny Wong have put their support behind Anthony Albanese as he vies for the party's leadership.

Mr Albanese and Bill Shorten are in the running for the top job and will spend the next month campaigning to win over caucus and party members.

Mr Albanese launched his campaign in Sydney on Tuesday night and was introduced by Mr Combet, who retired at the election.

"When you have just lost an election, you need to look for someone who is very strong, someone steeped in Labor tradition... someone who will fight, and especially when you're up against someone like Tony Abbott," Mr Combet said.

"What does Labor need? A strong person, absolute clarity of view about their values, demonstration of their values through their working life and commitment to the Labor movement."

Mr Albanese told his supporters at the launch he could lead Labor back to government within one term.

"In terms of my capacity to work with people in an open way, in a transparent way, what I will be saying to you and to rank-and-file members around the country is what you see is what you get.

"That is what I believe we need in terms of the leadership of the Labor Party.

"I'm putting myself forward though because I think at this time, I've got the vision, I can bring unity to the party, and I've got the strength that's required to take on Tony Abbott and bring him down in one term."

Mr Albanese said that the party needed to stand by its reform legacy.

"The way that I would see the coming period of opposition is that we need to defend our legacy. We need to defend our economic, social and environmental gains," he said.

Albanese has 'the capacity for the job'

Earlier, Mr Combet said he and Mr Albanese had been friends since studying economics together at Sydney University in the 1980s.

"So [I have] some personal loyalty to him, although I've also known Bill Shorten a long time too," he said.

"Both of them would make great Labor leaders I think, but I'm supporting Anthony tonight ... because he's got the capacity for the job, there's no doubt about that."

The party's national president, Jenny McAllister, also threw her support behind the former deputy PM at the launch, describing him as a much-loved leader.

"We are all here to support a man whose commitment to a democratic, energetic, progressive Labor Party is unquestioned," she said.

"He's a man who's never been afraid to point out an abuse of power and he's fought alongside many of the people here in this room for meaningful party reform."

Former health minister Tanya Plibersek, who is Mr Shorten's preferred deputy, was also seen at the Albanese launch.

'Passionate supporter of equality'

Senator Wong said both candidates would make outstanding Labor leaders and even prime ministers, but she says Mr Albanese has the most experience.

"One of the primary reasons I'm also supporting Anthony is there's been no stronger, more passionate supporter of equality, particularly for women," she said.

"He's an incredibly strong supporter of women getting into Parliament and supporting their careers, so he really lives his Labor values."

The results of the ballot between Mr Albanese and Mr Shorten will be announced on October 13.

Former prime minister Kevin Rudd changed the party's rules for electing a new leader when he regained the Labor leadership.

Mr Rudd gave party members a 50 per cent say in the choice of leader and also introduced a rule that meant a 75 per cent majority of caucus would be required to change the Labor leader in government.

Mr Combet has criticised the rule which governs the percentage of caucus needed to dump a leader.

"I understand why that position was brought forward but I think that's inherently undemocratic and it needs to change," he said.

"If you don't have the support of the simple majority of the Labor Party caucus then you're not in a good position as leader."