Ms Murphy, the Member for Dunkley, died in December surrounded by family after a years-long battle with breast cancer.
On Jane McGrath Day, the third day of cricket's Sydney Test, Mr Albanese remembered Ms Murphy and highlighted the work of the McGrath Foundation at the charity's high tea event.
Labor MP Peta Murphy died in December after a years-long battle with breast cancer. (Mick Tsikas/AAP PHOTOS)
Jane McGrath co-founded the organisation with her husband, cricket legend Glenn McGrath, before her death in 2008.
"We all know someone who has suffered from breast cancer," Mr Albanese told reporters on Friday.
"Just a month ago, we of course lost Peta Murphy, who was an extraordinarily courageous young woman who passed away at age just 50 as a result of a recurrence of breast cancer that she had overcome once before being elected to parliament, but tragically came back just a fortnight before her first speech."
Among a sea of pink-clad cricket enthusiasts, the prime minister praised the McGrath Foundation's prolific work in raising awareness of breast cancer.
Jane and Glenn McGrath co-founded charity the McGrath Foundation to support breast cancer patients. (Joe Castro/AAP PHOTOS)
Mr Albanese and Health Minister Mark Butler, who was also at the event, reaffirmed the government's $166 million commitment to a nursing and navigation program based on the charity's model.
"Because of the programs set up by the Jane McGrath Foundation, the journey that patients have is about the best-supported journey anywhere in the world," Mr Butler said.
"(But) that's not true for all Australians in all parts of the country and it's not true for all cancer types."
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The funding, announced in November, will increase the number of all cancer nurses by more than two-thirds and provide better support for those living with the disease.
Mr Albanese said the government wanted to see all cancer nurses providing support to sufferers and their families "when they need it, where they need it".