Former Labor speaker Anna Burke's Melbourne seat of Chisholm has fallen to the Liberal Party for the first time since 1998.
Liberal candidate Julia Banks said she felt exhausted but exhilarated after narrowly beating Labor's Stefanie Perri late on Saturday night in a shock upset for Labor. Ms Banks, a lawyer and senior business executive with two children, was too nervous to call victory but said she was buoyed by the unexpected result. 
"It's such an optimistic result. I don't take anything for granted in life," Ms Banks said surrounded by overjoyed supporters at the Box Hill RSL.
Outgoing Labor MP Anna Burke has held the seat since 1998 but in   December announced she would not recontest her seat at the 2016 federal election.
As of 10pm, Ms Banks had 22,071 votes to Ms Perri's 18,501.
Just days before the election, Prime Minister Malcolm Turnbull identified Chisholm, a seat deep in ALP heartland, as a key electorate.
The area takes in the eastern Melbourne suburbs of Box Hill, Burwood, Oakleigh and Chadstone
Ms Banks said the people of Chisholm had voted for economic stability and innovation.
"I think the people of Chisholm saw in me what they see nationally and that is they need strong economic leadership. Based on my business experience, significant business experience - I've been a working mum for over 20 years - I know first hand the challenges of juggling kids, family, working and community life."
The newly-elected Liberal MP said Labor Premier Daniel Andrews' controversial dispute with the CFA had also cost Labor the seat.
The long-running dispute between the CFA and the United Firefighters Union - which resulted in the dismissal of the entire CFA board - was expected to cost Labor several key seats.
Mr Andrews was set to be absent from Opposition Leader Bill Shorten's party on Saturday night in light of the election upset.
"To try and unionise volunteerism is just an appalling concept," Ms Banks said. "Everyone in Victoria remembers where they were on Black Saturday. It's one of the most tragic natural disasters to happen in this country and to try and unionise that is just an appalling proposition and it would have affected the way people vote.
"A much as Chisholm is an urban area, it's clearly an issue for people."