Prime Minister Malcolm Turnbull has used a speech in London to send a message to the more conservative wing of his Liberal Party back home.
In an address to the British research centre Policy Exchange, he has defended his policy direction and declared the party belongs at what he calls the "sensible centre" of politics.
Mr Turnbull was receiving an award named in honour of former British Conservative prime minister Benjamin Disraeli.
In receiving it, he observed the Liberal Party's longest-serving leader, Sir Robert Menzies, wanted the party to be progressive but to value individualism over the state.
"The sensible centre, to use my predecessor Tony Abbott's phrase, was the place to be. And it remains the place to be now. I mention this only to remind that, when we quote Menzies, Disraeli or other political leaders, we need to consider the historical context. Menzies sought a lesser role for government in citizens' lives than Labor did."
Mr Turnbull's comments are being interpreted as a rebuke to the more conservative party members, including former prime minister Tony Abbott, who openly criticised his Government.
Mr Abbott released an alternative policy manifesto for the Coalition in June and recently described the May budget as "second-best."
Deputy Liberal leader Julie Bishop has downplayed the party tensions, telling the ABC Mr Turnbull's speech should not antagonise colleagues.
"It is to a British audience, and it very eloquently articulates our values as a Liberal Party, and he refers to Sir Robert Menzies' efforts in the 1940s to consolidate the centre-right of Australian politics. It's a historically accurate account of how our founder, Robert Menzies, called the Liberal Party a progressive party believing in freedom and the rights of individuals and free enterprise, and how Menzies expressly rejected naming the party the Conservative Party because it was to combine liberal and conservative traditions, what John Howard always referred to as the 'broad church,' or what Tony Abbott called the 'sensible centre.'"
On his first visit to Britain as prime minister, Malcolm Turnbull has also been in talks with his British counterpart Theresa May about cybersecurity, terrorism and trade.
Mr Turnbull says he is ready for a free-trade deal with Britain as soon as the country leaves the European Union.
"We recognise that, as Britain moves to completing its exit from the European Union, we stand ready to enter into a free-trade agreement with the United Kingdom as soon as the UK is able to do so."
And Ms May has reaffirmed her position to strengthen the British partnership with Australia.
"The UK and Australia are major trading partners and investors in each other's economic success. Our strong and growing trade relationship is worth close to 14 billion pounds. We've both made clear our intention to continue to deepen our trade and investment relationship as the UK leaves the EU."
