Rudd has already taken over the notorious New South Wales branch in a crackdown on corruption and has now called a federal caucus meeting for July 22 to consider ending its right to elect the leader, replacing it by a vote split 50-50 between MPs and branch members.
Rudd's return to power and the huge burst of oxygen it gave Labor has shaken the Opposition, which has focused sharply on the boatloads of asylum seekers from Indonesia.
After winning office in 2007 Rudd dismantled former Liberal Prime Minister John Howard's tough "Pacific solution", much of which was resurrected by Gillard as rising numbers of boats swamped detention centres.
More than 22,000 have come this year, packing the main detention centre on Christmas Island well beyond its planned capacity. About 700 more are held in camps on Nauru and Manus Island, in Papua New Guinea.
The Opposition has promised to stop the boats in its first term, including a turn-back policy that is opposed by Indonesia.
Last week Rudd and Indonesian President Susilo Bambang Yudhoyono sent Opposition Leader Tony Abbott a veiled warning from Jakarta.
A Newspoll in the Australian yesterday said Labor and the Coalition were now equal in the two-party preferred vote that decides Australian elections, and that Rudd was preferred Prime Minister with a 53-31 per cent lead over Abbott.