Leak speculation dogs Labor | Federal Election 2010

Julia Gillard meets seniors in Melbourne.

AAP Images

PRIME Minister Julia Gillard will be campaigning in her adopted home town of Melbourne on Thursday as speculation about a leak continues to dog Labor's re-election efforts.

Her momentum on the hustings is sure to be tested, yet again, following her deputy Wayne Swan's admission the saga could be hurting the government's chances.

"It may but there's nothing we can do about the speculation," he told ABC Television on Wednesday.

Opposition Leader Tony Abbott, who will also be campaigning in Melbourne on Thursday, now has more ammunition to argue Labor's team is disunited and chaotic.

Ms Gillard went into a more defensive mode on Wednesday in response to a Nine Network story revealing she spoke out in cabinet against parental leave and a pension rise when she was Kevin Rudd's deputy.

She explained that she questioned the $50 billion cost of both measures over 10 years.

The prime minister faces another political headache on Thursday as the Australian Electoral Commission closes nominations for political candidates.

Disendorsed Labor MP Belinda Neal is due to hold a media conference, where she will announce whether or not she will run as an independent in the NSW central coast seat of Robertson - the government's most marginal.

Labor can take solace from the Greens' decision to preference the ALP in 54 lower house seats - 33 of which are Labor-held.

This includes marginal electorates like Robertson, held by just 0.1 per cent.

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