Malcolm Turnbull has left the door open to last-minute support for a major employer in South Australia, where jobless figures are the worst in the country.
But he's refused to enter into an auction with Opposition Leader Bill Shorten, who visited Adelaide and Whyalla on Thursday to pledge $100 million to support 3500 jobs at steelmaker Arrium.
The latest official figures shows SA's unemployment rate rising to 6.9 per cent in May on the back of 11,500 jobs lost, while the national rate was steady at 5.7 per cent.
That's in stark contrast to NSW's jobless rate drop to 5.2 per cent, where 29,600 jobs were created.
Mr Shorten said his package would allow Arrium to invest in new plant and equipment, make it more efficient and secure thousands of local jobs.
"Australia cannot be the only advanced economy in the world to let its steel industry die," the opposition leader said.
SA is losing its carmaking industry, impacting on many other businesses and creating an edgy environment for the election campaign.
Labor employment spokesman Brendan O'Connor said the coalition government had let the industry die when it came to office in 2013.
"It speaks for the lack of support that the Liberal party and Malcolm Turnbull have for manufacturing jobs," he told reporters in Adelaide.
"Jobs and growth" has been the coalition's mantra during the election campaign and is a key issue in marginal seats.
Arrium was placed in administration in April after negotiations with its lenders failed.
Administrators from KordaMentha say the restructuring and sale of the group should be finalised by the end of the year and they expect the company to attract genuine interest from potential suitors.
Mr Turnbull told reporters in Sydney he had been through Arrium's books with the administrator.
But he rejected Labor's approach.
"This is an unbusinesslike and highly political announcement from Mr Shorten," Mr Turnbull said.
The prime minister said the government had already acted on the dumping of cheap foreign steel into the Australian market and brought forward a rail line project that would increase demand for Arrium's steel.
But he would have more to say on the company in the future.
The government of SA Premier Jay Weatherill has put 11 items to both major parties including support for Arrium, extra spending on public transport, road and irrigation funding and a boost to health.
"We've tried to broker a bipartisan agreement on steel - Bill stepped up to the plate and we do invite the PM to join him," the Labor premier said.
Labor and the coalition fear the jobs issue will bolster the chances of the Nick Xenophon Team picking up SA lower house seats - making the prospect of a hung parliament more likely.
Warning of the instability of another Labor minority government, Mr Turnbull said voters needed to treat their ballot "as though that is the one vote that decides the election".
