Independent MP Andrew Wilkie is seeing more old than new way in an ALP billboard he claims is defamatory.
Mr Wilkie has written to Prime Minister Kevin Rudd demanding the Hobart advertisement be taken down.
The billboard features an image of Mr Wilkie and opposition leader Tony Abbott shaking hands and the slogan "Vote Wilkie = Get Abbott".
The member for Denison says the ad attacks his integrity because he has ruled out deals with any party before or after the federal election.
"They are effectively saying that I am a liar and I take exception to that and I'm not going to put up with it," he told reporters in Hobart.
Mr Wilkie flew under the radar to grab Denison from third spot in 2010 but three years later has a target on his head.
Labor has identified the popular MP's seat, which it held for 23 years before Mr Wilkie, as a must-win.
The independent supported the Gillard government in the hung parliament before pulling the plug over poker machine reform in January 2012.
He says he will be doing no preference deals nor offering either side confidence in the unlikely event of another hung parliament.
"I've learned that when you don't have an agreement with the government they can't take you for granted," he said.
" ... I will be at least as effective and probably more effective by not have any agreement with any party so no one can take me for granted."
Mr Rudd, who has already jettisoned an ALP candidate for abusing an opponent mid-campaign, has said he'll look at Mr Wilkie's letter and deal with it through the Tasmanian ALP.
"I have had a good, strong personal working relationship with Andrew Wilkie," the PM said.
Local Labor officials argue the message is not personal but urges Tasmanians to support Labor candidates if they want a majority Rudd government.
"Voting for Mr Wilkie will mean that's one less Labor seat," ALP senator Lin Thorp said.
But Mr Wilkie said Mr Rudd had an opportunity to put his money where his mouth was on his "new way" of positive politics.
"If he does anything less it will mean what he said in the parliament about a better quality of political discourse were hollow words," he said.
"I don't believe Kevin Rudd is a man of hollow words."
ALP state secretary John Dowling said in a statement: "The Tasmanian ALP is confident that there is nothing defamatory about its campaign material and the party will continue to campaign strongly to ensure (Labor candidate) Jane Austin is elected."
