The challenge for Australian Labor Party leader and Prime Minister Julia Gillard to stand down persists even if Workplace Relations Minister Bill Shorten has pledged his support for Ms Gillard.

The call is being made for the return to power of former PM Kevin Rudd just a few months to the Sept 14 national election and amid latest polls that indicate Mr Rudd is a more competitive choice against Coalition leader Tony Abbott as preferred prime minister than Ms Gillard.

The dare to Ms Gillard's leadership was made by John Murphy, holder of the inner-west electorate of Reid, and Labor MPs Laurie Ferguson and Simon Crean who had lost his seniority in the ALP due to his backing Mr Rudd's last challenge for the party leadership, but the former PM backed out.

"I believe it is now in the interests of the Australian Labor Party for the prime minister to stand down and for Kevin Rudd to lead us to the next election," The Weekend Australian quoted Mr Murphy.

The latest Seven News/ReachTel survey said Mr Rudd was 12 points more competitive than his successor, while 36 per cent of voters in 11 marginal Sydney seats also favour Mr Rudd if he heads again the ALP.

Mr Rudd, during a Friday campaign in Sydney, admitted making mistakes when he was prime minister. He specifically identified his inability to explain the decision to postpone in 2010 the Emissions Trading Scheme as his error in governance that led to his downfall as PM.

"That was a genuine problem and mistake primarily of communication," he said, while pointing out, "Everyone makes mistakes."

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