The Prime Minister's refusal to give Tasmanian war hero Teddy Sheean a Victoria Cross will be an election issue, both major parties say.
RSL members in Tasmania also will consider at their state congress the next move in the bid to have Sheean become the first VC recipient from the Royal Australian Navy.
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Former Tasmanian Labor minister Dr Julian Amos said he was in no doubt that Scott Morrison's decision to over-rule a unanimous recommendation by the Defence Honours and Awards Tribunal would sway voters.
"I don't believe he'll change his mind and it will be an election issue," Dr Amos said.
"It may be a small matter in the grand scheme of things, but small things do matter.
"This is enough to swing an electorate - or two - and the PM can ill afford to be throwing away seats on such a whim.
"There is a sense of injustice being doled out to our boy."
Dr Amos said Mr Morrison was "all about tactics" and dogmatic and did not often consider unintended consequences from his statements and decisions.
A senior Liberal Party source who did not want be named, agreed with Dr Amos on the likelihood of the PM's decision becoming an election issue.
"If Jacqui Lambie or the Labor candidate went to Latrobe or Devonport with a justice for Teddy Sheean poster it would be very tough to overcome," the Liberal said.
"You only need a small swing in a marginal seat.
"So it would have an impact in Braddon and a smaller impact in Bass."
Greens leader Cassy O'Connor also wants the PM to recognise Sheean's bravery.
"It would be such a shame if this was allowed to become an election issue because the Morrison Government can't admit it got it wrong, change tack and give this great Tasmanian the posthumous honour he deserves," Ms O'Connor said.
Political analyst Professor Richard Herr said it could be an "ambush" issue at the next election but said it should be remembered that the Tasmanian Liberals have pushed for Sheean to be reognised.
"It might sway a few voters who think the PM deserves a kick in the pants but it won't be a campaign issue, more an ambush issue that could have some impact," Professor Herr said.
"Jacqui Lambie is seen as the spokesperson for veterans and veteran's issues so it could have some impact there."
RSL Tasmanian president Robert Dick said the posthumous awarding of a VC to Sheean would be considered at the annual congress delayed from this month until September.
"It has to go back to members to see what they want to do and that will be at congress," Mr Dick said.
"There will be a motion discussed then."
Ordinary Seaman Sheean, who was born at Lower Barrington, was on the HMAS Armidale in the Timor Sea in December 1942, when Japanese aircraft attacked the ship.
After helping to free a life-raft, the 18-year-old Sheean rushed to an anti-aircraft gun firing at the swarming bombers as the ship sank after being struck by a torpedo.
He shot down at least one bomber, despite having wounds to his chest and back.