Mr Frydenberg holds Kooyong – which has only been held by conservative MPs since its creation in 1901 – with a margin of 12.8 per cent.

At the 2016 election he defied a swing to Labor in Victoria,improving his margin by 2.3 per cent.

But in the recent Victorian byelection several parts of the seat swung wildly to the Labor Party. That included a swing of 9.1 per cent in the previously safe Liberal seat of Hawthorn,which was claimed by the ALP's John Kennedy.

Mr Yates said the key reason for standing in Kooyong was to highlight the government's"failed"approach to greenhouse gas emissions,but he signalled a wide range of other issues.

He said he had few troubles with Labor's proposed halving of the capital gains tax and that governments had failed to deliver proper infrastructure to deal with the nation's fast growing population.

He said there were clear problems with negative gearing,with Mr Yates suggesting a limit on interest deductability for rental properties or the number of properties that could be negatively geared as a way to curb the cost of the tax concession.

He also took aim at links between the Liberal Party and large businesses,accusing the government of trying to represent the interests of business at the expense of ordinary voters.

"Business is treated by the Liberal Party as if it's a vote in itself. Business is a creation of people,of individuals coming together and working together – the business itself shouldn't be treated as individual,"he said.

"CEOs say their sole interest is to shareholders,that companies have the same rights as individuals.

"But they need to take into account the environment in which they operate and the social norms of their society. I believe business should be strong,but I don't believe that it should be superior to the individual."

Mr Yates'move follows the weekend decision by former Olympic skier Zali Steggall to stand against Tony Abbott in his safe Sydney seat of Warringah. One issue Ms Steggall is vowing to push is the government's stance on greenhouse gas emissions.

Health Minister Greg Hunt may also face a serious challenge,with suggestions former Liberal MP Julia Banks,who moved to the crossbench last year amid allegations of bullying,may stand against him in his Victorian seat of Flinders.

A ReachTEL poll conducted last week suggested Mr Hunt,who holds Flinders with a margin of 7.1 per cent,is now trailing the ALP 51-49.

Mr Yates said he gave himself a chance of defeating Mr Frydenberg."I got told to pack my bags at the CEFC and that didn't happen,"he said.