In his first speech to the Victorian Liberal state council since taking over the leadership last year, Mr Turnbull also reiterated his support for the East West Link – declaring it "vital" to Melbourne's future – and cautioned that next month's budget would not contain "a fistful of dollars."

"The Budget we will hand down on May 3 will include changes to our tax system designed to generate jobs and growth; promote investment, innovation and enterprise," he said. "But overarching all of this, however, is a fundamental truth – governments at all levels, and all Australians concerned for the future economic security of our country, have to accept the reality that we must live within our means."

Speaking at the Melbourne Convention Centre on Saturday, Mr Turnbull placed workplace and economic reform at the centre of his election pitch, accusing Opposition leader Bill Shorten of being a risk to productivity due to Labor's links with the Construction Forestry Mining and Energy Union.

"We can not allow Shorten, Labor and their union backers to stand in the way of advancing this nation's long-term and economic future," he said.

"In this election year, there is only one central issue – whether we complete our transition to the new economy, or we allow Labor to kill off that opportunity... Who do the people trust to steer the course to a secure, prosperous and exciting future?"

Industrial reform is a central battleground for the Coalition, with Federal Parliament being recalled on Monday week to debate the re-establishment of the Australian Building and Construction Commission, and a potential double dissolution election on July 2 if the senate fails to pass the ABCC bill.

Mr Shorten, meanwhile, has focused on the banking industry, vowing to conduct a royal commission into the finance sector if elected.

However, the government has all but ruled out a royal commission, saying the corporate regulator the Australian Securities and Investments Commission was adequate for policing the finance industry.

Environment Minister Greg Hunt said on Saturday: "We have a very clear view that ASIC has the powers of a royal commission and if there's any evidence that Mr Shorten has, he shouldn't withhold it – should provide it to ASIC. And if he doesn't have it, then he's been exposed for baseless claims."

"ASIC is the right body, free of political interference, to do the job. Mr Shorten doesn't seem to respect royal commissions which expose real corruption in the construction sector. He's washed his hands of corruption in the construction sector, and he won't provide evidence if he has any, to ASIC. He needs to explain why he won't provide evidence to ASIC, or whether he doesn't have any."

Mr Turnbull also used his speech to:

• Pay tribute to opposition leader Matthew Guy who he said had "absolutely revitalised" the Victorian parliamentary team.
• Talk up the Commonwealth's infrastructure package for Victoria, which includes a $500 million upgrade of the Monash Freeway, a $350 million boost to the M80 Western and Metropolitan ring roads, and $220 million to boost freight rail lines in rural Victoria.
• Question how Mr Shorten would pay for Labor's election promises, which he said were now at $51 billion.

Meanwhile, the Victorian Liberal Party has overhauled its financial structures after a former campaign director embezzled about $1.5 million from head office, in one of the most damaging scandals to hit the state branch.

But months after Damien Mantach was caught over the fraud, the incident still continues haunt Liberals, underpinning an internal power struggle within party ranks and the shock resignation of treasurer Andrew Abercrombie on the floor of state council on Saturday.

Victorian Liberal president Michael Kroger used the convention to unveil sweeping reforms designed to protect the party's finances from future theft, including the establishment of senior management team, the appointment of a full-time chief financial officer, and an enforceable code of conduct for contractors and more ASIC checks "where appropriate."

"We take the responsibility of holding the branches' money with great care. We hold that responsibility as sacred,"' he told the party's rank and file.

However, Mr Kroger has made no secret of the fact that he holds past members of the Liberal administrative wing largely responsible for not identifying the the fraud sooner – including the party's then treasurer, Mr Abercrombie,.

Internal tensions over the scandal spilled onto the floor of state council on Saturday, with Mr Abercrombie using his annual speech to defend himself against what he described as false claims and "misinformation" over the incident. In an unexpected move, the long-serving treasurer – who was being challenged for re-election as treasurer by one of Mr Kroger's allies, Russell Hannan – suddenly withdrew from the contest.

"There have been many efforts to shift blame to individuals," he said, urging the party to be more united ahead of the next election.

The move comes after Mantach amassed a small fortune under the noses of party officials, through an elaborate scheme using fake invoices and kickbacks from a printing company contracted by the Liberals. The former state director has pleaded guilty to 44 counts of obtaining financial advantage by deception and will reappear in court next month.

State director Simon Frost said he was "shocked" by the scandal and vowed such appalling behaviour will "never, every be repeated."