Mr Taylor defeated Sussan Ley 34 votes to 17 in a leadership spill on Friday that brought down the Liberals' first female leader just nine months after she took the top job.
Within minutes of the change of leadership, the federal government rolled out online attack ads criticising Mr Taylor's record as a minister and shadow treasurer.
Federal minister Murray Watt said the spill would do little for the coalition.
"The Liberal Party has completely lost touch with the vast majority of Australians and what they care about," Senator Watt told reporters in Sydney.
"There is no evidence to date that Angus Taylor has any solutions for those challenges."
Treasurer Jim Chalmers said Mr Taylor's record was shambolic.
"Angus has zero credibility on the economy and neither does the bin fire that is the coalition," he said.
Just days after re-forming the coalition with Ms Ley at the helm, Nationals leader David Littleproud said Mr Taylor would be the right person to lead the opposition back into government.
"Angus is the leader Australia needs to take up the fight against Labor's reckless spending and ideology," he said.
"Angus can offer hope to aspirant Australians and those who are struggling to enter the housing market."
Prime Minister Anthony Albanese, who has not commented on Mr Taylor taking over the leadership, paid tribute to Ms Ley.
"Congratulations to Sussan Ley for the grace and the dignity she has shown on a very difficult day," he said.
"She can take pride in the years of dedicated service she has given to her community, our parliament and our nation."
Ms Ley announced she would resign from parliament in the coming weeks after losing the leadership, triggering a by-election in her NSW seat of Farrer.
One Nation leader Pauline Hanson said her party would field a candidate in the upcoming by-election.
The right-wing party has been surging in opinion polls, overtaking the coalition on primary votes.
"(The Liberals) have changed the leader, but they're still on a dead horse," Senator Hanson told reporters on Friday.
"The people have had enough. They are hurting and they want strong leadership.
"They want to know where the politicians, the political parties, stand."
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