The Labor Party is projected to hold onto the federal seat of Dunkley in Melbourne's bayside south-east.
The ABC's Antony Green has said Jodie Belyea will be the next member for Dunkley.
She fills the vacancy caused by the death of former MP Peta Murphy in December.
Ms Belyea, who was hand selected by Ms Murphy said she would continue on the former MP's legacy.
"I'm not a career politician, I'm someone who wants to make a difference for this great community and further afield," she said.
"I’m now officially the second most important Jodie in Albo’s life," she said, referring to the prime minister's fiancee Jodie Haydon.
Easing the cost of living remains Ms Belyea's number one priority, which she said would be supported by Labor’s tax cuts but she said there was still more to do.
Deputy Prime Minister Richard Marles paid his respects to Ms Murphy, whose husband was in the room during celebrations.
"We miss her deeply and as every day goes by we know how incredible her legacy has been," he said.
"But wherever Peta is tonight, I know that the person with the biggest smile on her face right now is Peta Murphy."
He said the win marked a "very big night for our Prime Minister" and congratulated Ms Belyea on her efforts during the campaign.
"To have seen the primary vote maintained in the way that Jodie has done it is just an extraordinary achievement," he said.
Nathan Conroy in high spirits despite loss
Liberal candidate Nathan Conroy gave a jubilant concession speech, having received some good news moments before getting on stage.
"Just before I came up on stage my wife whispered in my ear that we are having our second child," he said.
"To be honest I don't know when I got the time to do it but I did it."
Loading...Although the results didn't go his way, he said the swing towards the Liberals was a positive sign and that it sent a message to the federal government.
"The next election we are coming for (Prime Minister) Albanese and his government," he said.
Mr Conroy congratulated Ms Belyea on her win.
"I wish her well because if she does well, our community does well and our country does well," he said.
Labor holds its primary vote
There has been a swing against Labor, with support for the Liberal Party growing across Dunkley, but it will not be enough to see the seat change hands.
Heading into the by-election, Labor held the seat by 6.3 per cent margin. Voting results so far show a swing to the Liberal Party of around three per cent.
"This was always going to be a tough ask," Liberal senator Jane Hume has told the party faithful.
Deputy Liberal leader Sussan Ley has also addressed supporters, congratulating the efforts of Liberal candidate Nathan Conroy.
Ms Ley said if the Liberals can get swings of three to four per cent nationally at the next federal election, they could get enough seats to win government.
She made an appeal to voters who didn't choose the Liberal Party this time: "We'll work bloody hard to get your vote next time."
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2024-03-02 09:49:37Z
CBMiaGh0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDI0LTAzLTAyL3ZpY3Rvcmlhbi13aW5uZXItZHVua2xleS1ieS1lbGVjdGlvbi1sYWJvci1qb2RpZS1iZWx5ZWEvMTAzNTMyOTA20gEoaHR0cHM6Ly9hbXAuYWJjLm5ldC5hdS9hcnRpY2xlLzEwMzUzMjkwNg
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