The Liberal Party's decision to parachute high-profile Indigenous business leader Warren Mundine into one of its most marginal and internally fraught seats in the country has once again divided the Coalition.

The big question that remains unresolved is whether the provocative move is politically savvy or electorally dangerous.

Some Liberal MPs are scathing about the decision to override the local branch and install Mr Mundine, who was once the ALP President, as the candidate.

One described it as an "own goal" by the Prime Minister and party, after the decision sparked a savage internal war with unpredictable electoral consequences.

The candidate dumped by the Liberal Party, Grant Schultz, now plans to run as an independent and some fear he could redirect some votes away from the Liberals.

Those critical of the decision to install Mr Mundine say that it came just as Treasurer Josh Frydenberg was trying to steer the conversation back to the economy with his keynote speech on Tuesday — an attempt to prosecute an economic narrative before the budget and election.

The Prime Minister's decision, they say, spectacularly turned the conversation back to the Liberal Party's internal divisions by overriding the local branch's candidate and creating new enemies.

Sorry, this video has expired Mundine says many generations of his family were born in seat of Gilmore.

A blunder or extending a bitter fight?

The decision again brings into focus the bitter local fight that lead to MP Ann Sudmalis stepping down, citing "branch-stacking, undermining and leaks".

But not all think it's a blunder. The Prime Minister is getting some support from NSW MPs who say the seat was all but lost with Mr Schultz as the candidate and that this controversial move at the very least puts the seat back "in play" for the Liberal Party.

One Liberal conceded it was a big gamble but said "when you are facing defeat you've got to roll the dice".

Another said Mr Schultz will "die without a trace" as an independent because he was a poor candidate who was not capable of defeating Labor as a Liberal or seizing the seat now as an independent.

The Prime Minister launched a full throttled attack on Mr Schultz on Wednesday saying "you don't get to bully your way into a seat", addressing the events that saw Ann Sudmalis withdraw from the race.

The PM described Warren Mundine as "a circuit breaker" candidate. Liberal sources say Ms Sudmalis's supporters are likely to fall in behind Mr Mundine now that her rival has been dumped

Sorry, this video has expired Grant Schultz says he feels betrayed by the Liberal Party.

Warren Mundine's move to the right

The decision to bring in Mr Mundine is not entirely surprising. He has long abandoned the progressive side of politics and was very close to Tony Abbott who appointed him as his key Indigenous adviser after he won the landslide victory in 2013.

Mr Mundine has long aspired to be an MP and was almost a Labor senator.

But the decision comes with significant risks. One of the most substantial and potent arguments that will be used against him is that he did not reside in the seat until his preselection.

The Prime Minister has tried to blunt attacks on Mr Mundine by pointing to the fact that the seat is Mr Mundine's ancestral land and he has a personal relationship with the land that goes back "further than any of us". Expect to hear this throughout the campaign.

Mr Mundine talked up his long connection with the seat declaring that "for me it is coming home".

The decision also allows the Nationals to run a candidate, further splitting the conservative vote on election day.

Deputy Prime Minister Michael McCormack says he has spoken to former NSW Nationals minister Katrina Hodgkinson about running, saying she's a fierce fighter. Whoever the Nationals choose, the race for Gilmore now looks messy, unpredictable and confusing.

Labor's message is clear

Mr Mundine's long political journey with Labor and just recently the Liberal Democrats will be used by Labor to paint him as a turncoat.

Labor strategists say they feel confident that they can defeat Mr Mundine and that his preselection only complicates the story for the Government.

Labor has been running a strong local ground campaign in Gilmore that they say a high-profile candidate will find difficult to disrupt.

But on a deeply personal level, this preselection brings Mr Mundine the closest he has ever come to realising his dream of entering the Parliament. He won't die wondering.