TONY Abbott has set a goal for a Coalition government to create 250,000 new jobs in Victoria over the next five years.

But the Opposition Leader has warned voters some of his policies will hurt if he is elected prime minister, saying tough decisions are needed to fix the Budget.

Mr Abbott faced 108 undecided voters in the nation's most marginal seat of Corangamite in the Herald Sun/Sky News People's Forum at Geelong RSL.

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He won applause when he declared he was an "absolute believer" in the National Disability Insurance Scheme.

Camera Icon Opposition Leader Tony Abbott says tough decisions were needed to fix the Budget. Credit: Herald Sun, Chris Scott

Quizzed on whether he would stop welfare for boat people, he said they were doing the "wrong thing" by coming to Australia illegally but still deserved to be treated humanely.

Mr Abbott received a tough reception for his strong defence of the controversial 457 visa scheme and his vow to scrap a superannuation tax cut up to $500 for 3.6 million low-paid workers.

He said the Gillard Government had been "fatally damaged" by breaking its no carbon tax pledge and said he would be honest about the painful decisions he had to make.

"I have to warn you, in all candour, that an incoming Coalition government will do some things that aren't popular," Mr Abbott said.

Camera Icon Tony Abbott speaks to undecided voters in the nation's most marginal seat of Corangamite in the Herald Sun/Sky News People's Forum at Geelong RSL. Credit: Herald Sun, Chris Scott

"We will do some things that will hurt, because when a country, a government, has been living beyond its means you have got to take remedial action.

"We are going to be upfront about it."

The undecided voters were chosen by Galaxy Research and after Mr Abbott was grilled for an hour they were asked if he won their vote: 50 said yes, 17 said no and 41 were undecided.

Julia Gillard will face 100 undecided voters in a People's Forum in the second-most marginal seat of Deakin on Monday night.

Asked by retired teacher Joan to name his top priority, Mr Abbott said it was to "get our budgetary house in order".

But he stopped short of saying when the Budget would return to surplus, explaining he did not know what state it would be in.

Mr Abbott said he did not believe gay marriage was "inevitable", vowed to sell Medibank Private, gave a strong defence of his direct action climate change plan and ruled out federal funds to support the SES.

He said the Coalition's industrial relations policy would be released very soon and promised "justice" for workers and business owners, saying WorkChoices was wrong and he wanted to get the balance right without a "them and us" workplace.

Mr Abbott rejected government claims that areas such as Geelong faced a tsunami of job losses under the Coalition's industry policy and said he would create jobs.

"I am very confident that within five years under a Coalition government we can create an additional quarter of a million jobs in Victoria," he told the Herald Sun.

"We will run a pro-economic growth government with less taxes, less red tape and an attitude which encourages investment."

He denied his policies would hurt the car industry, telling the People's Forum he wanted it to flourish and insisted he would ask Ford to make the Ford Territory left-hand drive so it could be exported as " a world car".

Victorian Premier Denis Napthine will today lead a push to help save the ailing car industry by urging other state leaders to make a pledge to buy or lease only Australian-made cars.

Mr Abbott said his plan to axe the carbon tax would help Victoria's large manufacturing base, which lost 33,000 jobs under Labor, including 20,000 since the tax started almost a year ago.

- with Michelle Ainsworth