Former Coalition frontbencher Sophie Mirabella is hoping to stage the biggest political comeback of the 2016 federal election when she takes on popular independent Cathy McGowan for the seat of Indi in north-eastern Victoria.

Ms Mirabella represented the people of Indi in federal Parliament for 12 years, until independent Cathy McGowan snatched the seat by just a handful of votes in 2013.

The latest polls suggest her chances of regaining the Liberal Party seat are grim, but given Cathy McGowan holds the seat with a margin of 0.3 per cent, Ms Mirabella still has good reason to be confident.

"A lot of people saw me in the street, still wanting help," she said.

"I know in a Turnbull Government I can deliver more - both in policy and in real results on the ground here."

Ms Mirabella is campaigning on her contacts and experience in government.

"I'm a bit of a veteran in public life and a lot of people in positions making decisions are friends of mine," she said.

Mirabella in hot water over hospital funding claim

But that same argument - that she could deliver more as a member of government - landed Ms Mirabella in hot water in April.

During a televised debate in Wangaratta in April, she claimed she had a "commitment" for $10 million for the Wangaratta Hospital, which she was to announce publicly if she had won the seat in 2013.

"That is $10 million that Wangaratta hasn't had because Cathy got elected," she said.

That comment sparked outrage in the local community and prompted Labor to refer the matter to the federal auditor-general.

The Federal Government maintained there was no "public" commitment to allocate the funds.

Ms Mirabella conceded there was widespread animosity directed at her in the 2013 campaign. ( ABC News )

The whole saga has put Ms Mirabella on the back foot during what will be a very closely-fought campaign.

Her opponent has scoffed at suggestions an independent could not make a difference.

"When I won the seat as an independent, everyone went 'Oh no, you haven't got a minister in cabinet, you're not going to get any funding, you'll be starved.' And clearly that didn't happen," Ms McGowan said.

"On a rough count, we've had over $127 million of taxpayers' money come into the electorate doing all the things it needs to do. So that's been fantastic."

Ms McGowan said one of the biggest impacts of electing an independent was making the seat marginal, after it was a safe seat for so long.

She said it was clear Canberra was now taking a keen interest in Indi.

"They're watching us like a hawk, they're paying enormous attention to us. So clearly they know that this seat matters and people of Indi matter," she said.

"I can go to Canberra and speak straight from the floor of the house, to whoever has got the power and influence.

"Because we've become a competitive seat, I absolutely know we get heard."

'Nasty, personal' campaign

Some people in Indi, and further afield, reacted with glee when Ms Mirabella lost her seat.

Former independent MP Tony Windsor famously told ABC TV's Insiders in 2013 that Ms Mirabella would win the "nasty prize" in federal Parliament.

Ms McGowan said Canberra is watching Indi 'like a hawk' because the seat went to an independent. ( ABC News )

Ms Mirabella concedes there was widespread personal animosity directed at her at that time.

"A lot of people who talk to me, now that time has passed, say that it was a very nasty and personal campaign," she said.

"I hope that this campaign we'll actually have an intelligent debate on policy on the respective records of each of the candidates and being able to deliver."

Ms McGowan has never personally criticised Ms Mirabella and does not believe the politics of personality played a significant role in the 2013 election.

She said the people of Indi simply felt they had been neglected for too long.

"What I really think is happening here is that people are welcoming the chance to make their vote count and they love the idea that this seat is competitive," she said.

"If rural and regional Australia is going to find its place in Australia in the future then we need to have competitive seats, we need to have policies that represent the real lives of the people who live here."

Ms McGowan confirmed an "altercation" took place but would not elaborate further. Ms Mirabella denied any physical contact took place.

Nationals candidate enters contest

For the first time since 2001, the Nationals will contest Indi, because under the Coalition agreement with the Liberal Party they cannot run against a sitting Liberal member.

The Nationals candidate, Marty Corboy, is excited about the chance to test the party's support base in Indi

"We are very positive about our chances here in Indi," he said.

"It's been about 15 or 16 years since our last candidate, Don Chambers, ran in 2001, and the response we're getting from the electorate is that they're keen to engage with us.

"On my doorknocking escapades people are very receptive to the message that the Nationals have."

Because of the seat's tight margin, preferences will again be a crucial factor in deciding who wins in 2016.

The Nationals will put the Liberal Party second on their how-to-vote cards but there is no guarantee those votes will flow to Ms Mirabella.