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Medicare co-payment 'death' should dampen leadership chatter, dissident Liberal MPs say

Outspoken Abbott Government backbenchers are celebrating the "death" of the controversial Medicare co-payment and say it should further dampen leadership chatter.

Liberal MPs Andrew Laming and Mal Brough previously publicly criticised the proposal.

But both men have now said Mr Abbott's decision to declare the policy "dead, buried and cremated" is "hard evidence" the Prime Minister is listening.

"I think you'll see a renewed Coalition now", Mr Laming said.

"This [policy] has done enormous damage to the Coalition brand. This was the big one.

"I've got no doubt Tony Abbott is a new man since the [failed leadership spill motion] of a couple of weeks ago."

Last month, Mr Brough, a former Howard Minister, declared Mr Abbott did not have his "unequivocal support". But he has now changed his opinion.

"I actually rang him up on the Monday night after he spoke, after the spill, and said 'you have my support, you have my total support'," Mr Brough said.

"What I can say to you is you have seen a person recognise where there are shortcomings, he's tried to address those shortcomings."

Mr Brough would not say if he would rather Malcolm Turnbull as Liberal leader, but dismissed reports he had ever considered challenging Tony Abbott.

"No I haven't. This is hyperventilating by the media," he said.

"I've had a lot of people say I've done a lot of things."

Both Mr Laming and Mr Brough claim the Federal Government's position in the polls is likely to improve if the Government makes further changes to contentious measures from last year's budget.

Turnbull quizzed on possible leadership challenge

Communications Minister Malcolm Turnbull was quizzed on ABC's 7.30 program on Tuesday about the recent round of leadership speculation.

He dismissed it as "a mixture of feverish imagination laced with late nights and probably a glass or two of wine too many" and insisted the PM had the party room's full support.

"Yes, there was a spill motion, but it was not carried and we are all behind the leader, every single one of us," Mr Turnbull said.

But several MPs in the Government have been hoping Mr Turnbull would challenge for the leadership.

When asked if he lacked the "ticker" to challenge he responded: "My ticker is in very good shape."

Mr Turnbull also downplayed suggestions he was too progressive to lead the Liberal Party, comparing his and Mr Abbott's views on same-sex marriage.

"Both of us believe the party room should decide whether there should be a free vote, a conscience vote," Mr Turnbull said.

"The idea that there's this massive gulf between us is quite imaginary and it's been put around by people frankly who I suspect don't bear either Tony or me a lot of good will."

The Prime Minister on Tuesday evening talked up the position of his Government but conceded it had "overreached" on some policies.

"Obviously we've learned some important lessons over the last 12 months... about, if you like, the political speed limits on structural reform," Mr Abbott told Sky News.

"We've steadied, we've got back down to business and I think the situation inside the Government today is very different to what it was just three weeks ago."