Bill Shorten will stick with his federal seat of Maribyrnong despite a redrawing of boundaries in Victoria making it more marginal.
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The federal opposition leader was due to shift to the new seat of Fraser, but he has written to Labor members saying he would stay in his existing seat.
About 40,000 of the 120,000 in the old seat of Maribyrnong have been moved to the new seat.
Mr Shorten said the fact that his family home lies in the new seat of Maribyrnong weighed heavily on his decision.
"This is not an easy decision. However, as the majority of voters from the old Maribyrnong electorate will still reside within the new boundaries, I advise you of my intention to nominate as the candidate for the federal seat of Maribyrnong," he wrote.
He said he was disappointed the redistribution had removed so many of his former constituents to Fraser.
But he was confident the candidate for Fraser would continue to advance the interests of working people in Melbourne's western suburbs.
Political analysts believe Fraser will be the safest Labor seat in Victoria under the boundary changes.
Fraser has been the subject of Labor factional infighting, with the CFMEU and right-wing unions demanding Jane Garrett be given preselection there, or in a Victorian upper house seat, after she decided to step down from her marginal seat of Brunswick.
Ms Garrett quit Victorian state cabinet two years ago during the fight over a new firefighters pay deal.
Australian Associated Press