Dumped Liberal candidate Grant Schultz has warned the Prime Minister he “better watch out” ahead of the next election.

Scott Morrison has disendorsed the local real estate agent for the marginal seat of Gilmore on the New South Wales south coast.

Instead they’ve parachuted in Warren Mundine, a former Labor national president who only become a Liberal Party member on Tuesday.

Mr Schultz quit the party in disgust on Tuesday and will now contest the seat as an independent.

“I can no longer be a member of a party that does not support democracy or act with integrity,” he said in a media conference.

Dumped Liberal candidate for NSW seat Gilmore says the party is “acting like a dictatorship”

Grant Shultz has had his pre-selection overturned & Libs will install Warren Mundine as the candidate

Mr Shultz has quit the Liberals & will contest seat as an independent @2GB873

— Michael Pachi (@michaelpachi) January 22, 2019

The son of iconic Liberal MP Alby Schultz admits he was “quite unhappy” about the decision, to say the least.

He tells Steve Price the government will regret treating his country electorate like a play-thing.

“Country people are pretty parochial, they’re very proud, they can be fairly tolerant of being left out of things and ignored by the city-based politics.

“But there comes a point when they get sick of that and when they do, you better watch out.

“Don’t take country people for granted.”

Click PLAY below for the full interview