PM points to Victorian Liberal woes Federal Labor has pointed to the under-siege Liberal government in Victoria, where voters are angry about services cuts, as evidence of the risks posed by a possible Abbott government. New Victorian Liberal premier Denis Napthine on Wednesday night took over the Victorian Liberal leadership in the wake of Ted Baillieu's sudden resignation after a dramatic day in state politics. Mr Baillieu and his government faced falling opinion poll numbers, budget challenges, allegations of corruption, and public concerns over health and TAFE cuts. Dr Napthine immediately made overtures to the federal government ahead of the April Council of Australian Governments meeting in Canberra, where crime-fighting, schools and disability service funding will be on the packed agenda. "I would very much like to have a better relationship with the federal government," he said on Thursday. But he then demanded Ms Gillard reinstate $475 million removed from the state's hospitals over four years, above the $107 million handed back by the federal government last month. On the Gonski schools funding reforms, Dr Napthine said his bottom line was "no school or individual student" be disadvantaged in any changes. Ms Gillard says she will "work in the interests of all Victorians" with the new premier, but she warned voters had "grown weary" of state's service cuts. "I think in the Victorian community the sense is they are sick of the Liberal cuts, and what I don't think people should have to risk is those cuts being added to by a Tony Abbott-led Liberal federal government," she said. Ms Gillard declined to say whether the sudden, first-term leadership change in Victoria would blunt criticism of her takeover of the Labor leadership from Kevin Rudd in 2010. But Mr Rudd commiserated with Mr Baillieu's fate, which mirrored his own. "Politics is a very difficult life and to Ted Baillieu and his family our best thoughts and wishes go through to them on what is just a difficult day in someone's life," the former prime minister said. Opposition Leader Tony Abbott said there was a "world of difference" between the Baillieu-Napthine changeover and the Rudd coup. "There was no challenge, there was no ultimatum, he simply resigned and my heart goes out to Ted and his family," he said. He declined to say whether he or his office had put pressure on the Victorian Liberals to make the change. "Obviously I talk to my colleagues all the time about a whole range of subjects but ... we were working very constructively with Ted Baillieu," he said. The state Liberal government, which holds power by the barest majority, is behind Labor in the polls and has a lot of work ahead of it before the Victorian election in 2014. Meanwhile, Treasurer Wayne Swan said allegations in Queensland against former federal Liberal treasurer Peter Costello and his "Liberal mates" should be investigated. Mr Costello's commission of audit for the Newman government recommended Queensland sell power assets and consider outsourcing health, transport and other services to reduce debt. Now he's had to deny his lobbying firm could stand to financially benefit from any sales. Mr Swan said the Queensland audit was a smokescreen to break election promises. Mr Abbott plans a similar audit if he wins government this year.