Economic reform is the key for Australia's long term prosperity and according to Prime Minister Julia Gillard, this agenda should be the driving force of any government leading the country.

Speaking before the Australian Industry Group on Monday night, Ms Gillard emphasised that Australian governments from across party lines have embraced bold and innovative reforms that steered the country though two decades of tumultuous economy and three global downturns.

She pointed out that minus the presence of resolve for reform, "our economy could never have resisted recession through two decades and three global shocks."

Along that line, the prime minister scored suggestions coming from the Coalition that the country needs to backflip on certain provisions of reforms as she maintained that even in the midst of a minority government, Australia must remain firmly on track to embrace necessary economic reforms despite rising challenges from the opposition.

Doing otherwise, Ms Gillard warned, could reverse the country's gains as she stressed that "if a strain of economic Hansonism takes hold on the conservative side of politics in a Parliament which is so finely balanced, our long-term prosperity is at real risk."

She underscored that with the emerging uncertainty in the global and domestic debate over carbon pricing, Australia must stay the course on its reform agenda as she enjoined "everyone who is committed to economic reform now has a job to do," adding that "the reform consensus is as important."

Amidst the brewing debate sparked by opposition treasury spokesman Joe Hockey when he called for more government role in determining the country's cash rates, Ms Gillard derided attempts by the Coalition to block the federal government's reform agenda.

She expressed surprise that the opposition would even think of reconsidering the country's policy on interest rates, currency trading and contract agreements, which she said were the backbone of the boom and resiliency displayed by the Australian economy during the past few years.