Mr Turnbull accused the opposition leader of lying up to a dozen times in a 20 minute speech that sought to cement the perception of an untrustworthy Labor leader ahead of two knife-edge byelections in Queensland and Tasmania.

"The lies they are telling there are so shocking," Mr Turnbull told the Liberal National Party conference on Saturday. "They have got trucks going around saying we have cut funding from Caboolture hospital, completely and utterly untrue."

Mr Turnbull accused Labor of having "contempt for the people of Longman" by claiming $2.9 million had been taken away from the hospital based on the difference between a revised funding plan and a previous commitment.

Healthcare is looming as the key policy battlefront of the July 28 byelection - which is seen as a test case for the looming national poll - sparking fears that Labor's claims the Coalition wants to privatise Medicare were gaining traction in the electorate.

Mr Turnbull said people are starting to recognise that Bill Shorten "cannot tell the truth".

"Because we are responding, we are rebutting it, nailing it, not letting them get away with it," he said.

The Prime Minister also issued a rallying cry to the party faithful, praising Longman by-election candidate Trevor "Big Unit" Ruthenberg, who rejected Labor's claims that hospital funding had been cut by pointing to an overall increase in funding.

"We never give up on Australian jobs, we never give up on Australian business because we are the part of aspiration," Mr Turnbull said."Labor has become a party of lies, negativity and grievance."

Labor, which took its campaign to Tasmania on Saturday - where it faces a battle to hold onto Justine Keay's seat of Braddon - announced it would give $25 million to support the establishment of an AFL club if elected.

"Having a permanent AFL presence will not only be good for the Tassie economy - it's great for young players, local clubs and footy followers across the state," Mr Shorten said.

Mr Turnbull's speech suggested the general election in Queensland would be fought over economic management, childcare subsidies, tax policy, and border protection.

He paid tribute to outgoing father of the Senate, Ian McDonald - who lost his preselection spot on the Queensland ticket on Friday - along with fellow outgoing Senator Barry O'Sullivan, who forced the Coalition to establish the banking royal commission it had rejected for more than a year by threatening to cross the floor.

"While that preselection was disappointing, for them, I want to thank them very much for the amazing effort they have made," he said.

Home Affairs Minister Peter Dutton also thanked the two Senators for their service on Saturday and said he believed "a need for generational change" was the reason they were dumped.

As part of his address at Brisbane's RNA Showgrounds, Mr Turnbull discussed the drought in regional Queensland and his investment in the state's hospitals and schools.

The PM described Queenslanders as "tough fighters" and congratulated the state on securing a $5 billion Defence contract to build more than 200 Rheinmetall Boxer CRVs at Ipswich.

Outside the Royal Convention Centre at the RNA Showgrounds, anti-Adani protesters brought an inflatable dinosaur, representing former Prime Minister Tony Abbott, and a giant Pauline Hanson head ahead of the LNP voting on whether to support a new Queensland coal-fired power plant.

Galilee Blockade spokesman Ben Pennings said he hoped the LNP faithful would listen to citizens rather than "old dinosaur politicians".

"We hope to express our concerns regarding public money going into (Adani), despite the evidence of climate change and coal being in decline," he said.

"Two-thirds of Australians don’t want the Adani mine and more people don’t want public money going into Adani."

LNP Member for Kawana Jarrod Bleijie told the protesters to "get a real job" as he walked past them and went into the conference on Saturday morning.

Mr Pennings described Mr Bleije's actions as "immature".

"This is an important debate, 'Stop Adani' is a populist movement and we were there to send a clear message of the concerns we have for our children and grandchildren."

Despite the protesters' efforts, the LNP members at the conference voted in favour of government support for a Queensland coal-fired power plant and also condemned gender-neutral phrases used by the Queensland Labor government.

The votes - which have no bearing on Parliamentary policy - also carried motions for a review of the immigration intake, support for South African white-farmers and called on LNP Parliamentary representatives to ensure "there are no impediments to traditional Christian celebrations such as Christmas and Easter".

The party also voted to challenge developer donation laws in the High Court after they were introduced by the Palaszczuk Labor government earlier this year.

Labor party president Wayne Swan fired back at the Prime Minister saying his fiery performance was a sign of desperation.

"We saw a very desperate Prime Minister ... who was hurling abuse at his political opponents as a camouflage for the massive cuts to health and education, particularly here in Queensland which are going to flow from decisions this Prime Minister has taken," Mr Swan said.

"He doesn't walk in the same shopping malls as Queenslanders, he hasn't got a clue what life is like in the suburbs of Brisbane, or regional areas of Queensland, and his tax package shows that.

"His tax package is directed to the top 10 per cent of income earners, to the big banks and to wealthy foreign corporations and people in places like Longman are going to be paying for that tax package through cuts to health and education and higher taxes for decades to come.

"The big issues in Longman are the issues of the provision of public health services. Mr Turnbull is proud to have cut hospital funding at the Caboolture Hospital that is one of the biggest issues in the Longman election, but worse than that, people there are on modest incomes.

"People who live in regional Queensland, people who live in suburban Queensland are going to get the rough end of the pineapple from Malcolm Turnbull through cuts to health and education."

Mr Swan added that the dumping of two experienced Senators showed the party in Queensland was "a shambles".

"Not only did they sack two of their senior Senators, but if you look at the crowd there today they couldn't even get the room half-full for the Prime Minister," he said.