Two Liberal candidates have suddenly stepped down over dual citizenship concerns, throwing the Coalition into chaos on day two of the election campaign.

On Friday, the Liberal candidates for the safe Labor seats of Lalor and Wills in Victoria stepped aside after it was revealed they were unlikely to be eligible for parliament due to dual citizenship.

For the first time in a general election, candidates must lodge with the Australian Electoral Commission a “qualification checklist”, which will be published online.

The checklist covers issues which could disqualify them under section 44 of the constitution such as citizenship, bankruptcy and pecuniary interests.

It was developed following the MP citizenship scandal of the past term.

Evidence of foreign citizenship renunciation or Australian citizenship must be provided as part of the documentation when a candidate nominates, before April 23.

A Victorian Liberal spokesman said the candidates, Kate Oski and Vaishali Ghosh, had voluntarily withdrawn.

“The party’s vetting process identified there was a possibility neither would meet strict citizenship requirements under section 44 of the Australian Constitution in time for close of nominations,” he told AAP.

“We thank our outgoing candidates and are in the process of identifying new candidates for Lalor and Wills.”

Prior to the dramatic axing, the second day of the campaign trail was running smoothly for Prime Minister Scott Morrison and Opposition leader Bill Shorten, with both appearing in Sydney to talk up major policies.

Mr Shorten announced a cash injection of $125 million for extra cancer research funding, which includes $20 million to research pancreatic cancer.

“Pancreatic cancer will be Australia’s second-biggest cancer killer in five years, killing almost as many people each year as breast cancer,” Mr Shorten told reporters in Bennelong.

“Sadly, the five year survival rate for pancreatic cancer is less than 10 per cent.”

Opposition Leader Bill Shorten visited PRP Diagnostic Imaging at the Ryde Medical Centre in Sydney. Photo: AAP

Last week’s federal budget included funding for two new medicines to save people from rare cancers.

Mr Shorten admitted for the first time that the Newstart Allowance needed to be increased to match rising costs of living.

“I think there has to be (an increase) … but let’s see what happens with the review,” Mr Shorten said.

The Australian reported on Friday that two of the most marginal seats in the country – Queensland’s Herbert and Longman, both held by Labor – have above-average numbers of people on the dole.

Meanwhile, Mr Morrison’s first full day of campaigning focused on benefits for small business owners and “congestion-busting” road upgrades in western Sydney.

We’re busting congestion in Western Sydney, & across the country, to manage population growth by investing in building new roads & rail, like the Mulgoa Rd upgrade in Penrith I visited today. It’s part of our $100b infrastructure plan to help get Australians home sooner & safer. pic.twitter.com/WLiI7765JX

— Scott Morrison (@ScoMo30) April 12, 2019

He began the day with a tour of an oil manufacturer in St Marys in the Labor-held western Sydney seat of Lindsay.

Flanked by Foreign Affairs Minister Marise Payne and Lindsay candidate Melissa McIntosh, the trio zipped around the factory floors, talking up the Coalition’s plan for a strong economy and dissing Labor’s tax plan.

Surrounded by oil, Mr Morrison avoided any slip-ups during his tour of a family-owned oil factory in St Marys. Photo: AAP

“If Bill Shorten won’t tell you how much extra tax he’s going to put on you, then why would you vote for him?” Mr Morrison told reporters.

The Treasury has recently distanced itself from the Coalition’s attacks on Labor’s tax policy, claiming it did not come up with the $387 billion total for Labor’s tax bill.

-with AAP