Prime Minister Tony Abbott has told the UN General Assembly that nations can work together, despite their differences, to serve the common humanity.

Mr Abbott listed the “murderous rage of Islamic State” as the first problem the world faces.

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He told the General Assembly Australian forces might join a coalition to destroy the terrorist group.

The Prime Minister also said the search for Malaysia Airline flight MH370 shows countries like China, Korea and Japan who have historical grievances, can work together.

The prime minister drew inspiration from former Labor prime minister Ben Chifley’s famous 1949 speech.

“One of our prime ministers once talked about our great objective – our ‘light on the hill’ as he put it – to work for the betterment of mankind, not just at home but wherever we can lend a helping hand,” Mr Abbott said on Thursday.

He said the world was wracked with problems but all could be overcome.

Australia, he said, would always play its part.

“We’re strong enough to be useful but pragmatic enough to know our limits,” he told the half-full assembly chamber.

“We have never believed that we can save the world single-handedly; but nor have we shrunk from shouldering our responsibilities.”

He spoke of Australia’s pride at having contributed so much to UN peacekeeping and humanitarian missions over the institution’s 70-year history. He described the UN as “an imperfect instrument”.

“Still, it’s better than ‘might is right’ and it gives good arguments the best chance to prevail.”

The prime minister’s speech came a day after he addressed the UN Security Council on the terrorist threat posed by Islamic State foreign fighters.

Mr Abbott is also having one-on-one meetings with the leaders of Egypt, Iraq, the Netherlands and Lebanon during his second day of talks on the UNGA’s sidelines. He is due to leave New York on Friday.