Liberal MP Katie Allen holds the blue-ribbon seat by just 2.6 per cent.
Labor candidate Dr Michelle Ananda-Rajah and Greens candidate Sonya Semmens are both vying for the seat.
The opposition alleges the signs were put up by the Liberal Party campaign team, and claim the signs misleadingly impersonate the Greens party.
A Liberal spokesperson said the corflutes were “not authorised by us” but did not condemn the signage when pressed on the matter.
Victorian Labor has confirmed they will be seeking a Federal Court injunction against the “deceptive and misleading” signs.
“Polls have just opened and the Liberals are up to their usual Election Day dirty tricks again,” it said on Twitter.
“We have witnessed Liberal Victoria campaigners putting up deceptive and misleading signs across Victoria.
“This is how desperate they have become.
“We will seek an injunction today.”
An Australian Electoral Commission (AEC) spokesperson told 9News the organisation is aware an injunction is being sought regarding the signage.
The AEC is also in discussions with the Australian Government Solicitor regarding their “own actions” on the signs.
Higgins is expected to be one of the tightest races in the federal election today.
The electorate is known as the Liberal heartland and has been held by significant members like Harold Holt, John Gorton and Peter Costello.
It covers some inner eastern Melbourne suburbs.
Higgins isn’t the only Melbourne seat where corflutes have drawn the ire of political parties today.
Earlier today, the Liberal Party referred the Chinese-language voting cards of independent Kooyong candidate Monique Ryan to the AEC.
The Liberals said the cards, designed to inform Chinese-speaking voters, breach the regulations because they do not carry an authorisation in the same non-English language the rest of the card is written in.