The Liberal Party's move to preference the Greens last casts doubt over the minor party's hold on the seat of Melbourne, but incumbent Adam Bandt believes he can win.
The deputy Greens leader holds the lower house seat by a six per cent margin after wresting it from Labor at the 2010 election.
Mr Bandt received 36 per cent of primary votes compared to Labor's 38 per cent, but obtained victory on Liberal preferences.
Mr Bandt says the Liberals' decision to preference the Greens last for the September 7 election won't unseat the Greens from Melbourne.
"It speaks volumes that Tony Abbott would rather have a Labor backbencher in the seat of Melbourne than me and I wear it as a badge of honour," he told reporters.
"Tony Abbott knows that a Labor backbencher will vote to cut single parent payments, to slash university funding, to keep refugees in indefinite detention.
"The Greens won't.
"The Greens are now the real opposition to Tony Abbott."
Mr Bandt said he only needed a small boost in his primary vote - a swing of five per cent - to win Melbourne.
Australian Greens leader Christine Milne was also confident the Greens could retain Melbourne.
"It shows just how effective Adam Bandt has been," she told reporters in Sydney.
Senator Milne accused Labor and the Liberals of shutting down democratic options after they ruled out deals with minor parties and independents to form government.
She also scoffed at Mr Abbott's suggestion he wanted to avoid a minority government, saying he couldn't govern without the Nationals.
West Melbourne resident Sasha Gleeson, 25, says he will vote for Mr Bandt.
"I just think it'll be more worthwhile than Labor. It'll give them a position to bargain for environmental policies."
He says there is little difference on policy between the major parties.
Conrad Phillips, 23, of North Melbourne, says he is backing the Greens.
"I don't like the other two parties. I really don't want Abbott to win," he says.
He says Labor has not dealt with the treatment of asylum seekers well.
University of Melbourne public policy fellow Nicholas Reece thinks the Greens can win Melbourne, saying a recent Galaxy poll put their support there at 48 per cent.
"I think that the decision by the Liberals to preference Labor ahead of the Greens is a boost for Labor's campaign in the seat, but it's by no means a decisive step," he said.
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