Rudd's grand plan is for an Asia-Pacific alliance.
Mr Rudd says the institution should span the entire Asian-Pacific region including the United States, Japan, China, India and Indonesia.
"The danger in not acting is that we run the risk of succumbing to the perception that future conflict in our region may somehow be inevitable," he said.
Opposition foreign affairs spokesman Andrew Robb says Mr Rudd is being presumptuous and his first job is to mend damaged ties with countries in the region.
Opposition brands Rudd's Asia-Pacific plan 'presumptuous'.
"His (Kevin Rudd) first job is not to be making pronouncements about grand architecture for the region, telling China, Indonesia and Japan and India how they will be organised as a region by Australia in the next 20 years," Mr Robb told ABC radio.
"It is a little bit presumptuous".
"Once he has demonstrated a capacity to build and maintain and grow strong bilateral relationships with all these countries (and) repair the damage he has already done with some of these countries, then we can ... maybe influence the broader architecture that shapes the region."
Kevin Rudd presumptuous? Who'da thunk it!