Advance Morwell chair John Guy said his group had heard strong rumours over past weeks the Medicare office was to move from its Commercial Road location to the Elgin Street Centrelink office.

"Advance Morwell had sought the support of Latrobe City Council and Mr Chester in addressing its key concerns about access issues if the move were to proceed," Mr Guy said.

He said the current location was convenient to public transport users and had adequate parking available, particularly for people with disabilities.

The demands of Centrelink clients and Latrobe City library users meant parking was a problem in Elgin Street, Mr Guy said.

"The Morwell CBD can also ill-afford to lose yet another business from its CBD at a time when retail is struggling and the impending carbon tax is causing added concern due to the uncertainty about its effect," he said.

Mr Chester said he would pursue the matter now that it arisen again, after initial concerns had been raised with him last year.

"When I was first contacted about this last year I sought assurances from the (federal) minister in relation to access and customer services and said we would need a guarantee that there would be no reduction in either before the community would support a move," he told The Express.

"The minister assured me last year that customer accessibility and customer demand would be assessed before any relocation of Medicare proceeded in Morwell.

"I am concerned with reports that the relocation may be going ahead and there has been a distinct lack of consultation with local residents and groups like Advance Morwell.

"When Parliament resumes next week I will follow up these concerns and determine whether local community views will be able to influence the government's decision," he said.