Sinodinos concedes Canning a 'challenge'

Liberal senator Arthur Sinodinos concedes next month's by-election in the West Australian federal seat of Canning will be a challenge for the government.

Liberal MP Don Randall, who died last month, had a lead of almost 12 per cent, but according to the latest Newspoll that margin has now all but disappeared.

"For us, there is a challenge in navigating this seat in an environment where we've had some headwinds lately," Senator Sinodinos told ABC Radio on Tuesday.