Prime Minister Kevin Rudd combined humour and sarcasm as he challenged political rival Tony Abbott into series of debate outside the political arena. He said that the topic can be anything from Mr Abbott's choosing.

Mr Rudd announced his challenge to Mr Abbott through an exclusive interview with ABC's program 7:30.

He said, "Mr Abbott, I think it's time you demonstrated to the country you had a bit of ticker on this. I mean, he's the boxing blue, I'm the glasses-wearing kid in the library. Come on, let's have the Australian people form a view about whether his policies actually have substance, whether they actually work or whether they are just slogans."

Mr Rudd finally used a serious tone when he attacked the Coalition's asylum seeker policy, "The whole program rests on house of cards based on lies about debt and deficit and Indonesia.

Inasmuch as he expressed doubts on the Coalition's asylum policy, he also showed sportsmanship as he admitted that he might have committed a mistake when he dismantled the Howard Government Pacific Solution when he was elected in 2007.

"If we have a mistake, let me just say this ... It was in perhaps not being quick enough to respond to the new change in external circumstances with an outlaw from Sri Lanka from a civil war in 2009 to 2010. There is nothing set in stone with immigration policy or asylum seeker policy. I'm open to adjustments in the future."

As for asylum seekers coming from Iran, he said that, "I can understand why people want to leave Iran. But the bottom line is, it's not all about seeking freedom from persecution.

He attacked Mr Abbott's plan to put back the Howard policies and bringing the asylum boats to Indonesia.

"Mr Abbott, how will you turn the boats back? If it sinks, what will you do? Let people drown? If you turn your boat back to Indonesia navy says no... what do you do then?"

Mr Rudd was also reminded that he vowed never to take the Labor's leadership seat back. He reasoned that ousted Julia Gillard had vacated the seat, paving the way for the caucus ballot.

He also said that he does not want to see all efforts of the party go down the drain.

"Tha Australian Labor party and the government was on track towards a catastrophic defeat and I wasn't about to stand idly by and see everything we worked for for the last five or six years go down the gurgler as Mr Abbott set about ripping it apart."

Mr Rudd was also asked if the Labor Party deserved punishment after its internal leadership battle affect the team's goal and objectives. He said that issues on leadership always happen. He said had seen the same issues coming to pass with four Liberal leaders within four years before who took on the leadership.

Mr Abbott did not react about Mr Rudd's call on one on one debate that Mr Rudd took to Twitter to call on Mr Abbott.

In his twitter post, Mr Rudd said, "we need a debate on the national economy. National Press Club next Thursday? I'll be there. Over to you."

Spokesman for Mr Abbott responded that the Opposition Leader will take on the challenge once Mr Rudd "ends the uncertainty and names the election date."