Tony Abbott has declared the Liberals are “under new management” after his election as party president, vowing to help Angus Taylor lead a “people’s revolt” against the Labor government.

The former prime minister and conservative warrior was elected to the position at the Liberal federal council meeting in Melbourne on Friday, marking a return to active political life seven years after losing his seat in federal parliament.

“I owe the Liberal party big time, and that’s why I regard it as my duty to serve the party in this time of existential crisis,” Abbott said after securing the presidency unopposed.

The federal presidency is an unpaid role that oversees the party’s administrative wing and campaigning infrastructure, working at arm’s length from the parliamentary team and typically away from the media spotlight.

But Abbott’s large public profile and hardline views means it will attract more attention, creating potential distractions for Taylor and prompting fears among moderates about a further lurch to the right.

In his speech to the federal council, the former Warringah MP claimed Australia was “drifting backwards” and plagued by a “kind of spiritual malaise”.

“We don’t believe in ourselves anymore,” he said.

The 68-year-old said the Albanese government was incapable of fixing the nation’s problems because of its ties to trade unions, its “obsession” with cutting greenhouse gas emissions and an “ambivalence about the country itself”.

Abbott warned the Liberal party needed to urgently rebuild its grassroots membership base, which he said would be lucky to number 50,000.

Describing the Liberals as the “patriot party”, he said it should be an “absolutely unbeatable” political force.

“Our job, individually and collectively, is to lead a people’s revolt to be rid of the worst government in living memory,” Abbott said.

“I promise you, we are under new management. We are hungry to win for our country’s sake. May God bless Australia, may God bless all of us as we build a better future together.”

Abbott made the same “we are under new management” declaration after leading the Coalition to its landslide 2013 election win.

The Liberal frontbencher James Paterson welcomed Abbott’s election, describing him as the party’s best campaigner in “modern times” and a “devastatingly effective opposition leader”.

Labor ministers mocked Abbott’s return to active political life.

“I cannot think of anyone better,” the climate change and energy minister, Chris Bowen, said.

“Tony Abbott has been utterly out of touch with the views of mainstream Australia for 20 years. If he is going to play a bigger role in Liberal party policy, that is bad for the Liberal party and good for the Labor party.”

The environment minister, Murray Watt, said Abbott’s return was the latest sign the Liberal party was out of step with mainstream Australians.

“They have decided to chase One Nation and drift further to the right rather than listen to the vast majority of Australians who do not support those views,” Watt said.