The Liberals are set to retain key heartland Melbourne seats despite sizeable swings against the party, as it declares victory in Kooyong and leads in neighbouring Higgins.
Although candidate Katie Allen isn't declaring victory in Higgins yet, she has a good feeling about it.
"We're waiting to see. It's a little bit more to go under the bridge yet but we're feeling pretty positive," she told AAP late on Saturday night.
"We have been quietly confident for a long period of time and I don't think we're particularly surprised about Higgins ... I would say we're deeply pleased."
She looks set to inherent the blue-ribbon seat from retiring Liberal minister Kelly O'Dwyer, who is stepping away from politics after 10 years in the electorate.
With nearly 65 per cent of the vote counted, Ms Allen was leading Labor candidate Fiona Mcleod 54-46 on a projected two-party preferred basis despite a six per cent swing against the Liberals.
"Probably at the federal campaign point of view I think that is more of a surprise because ... the polls have objectively saying we were not going to win," Ms Allen said.
Despite a widely-predicted Liberal-National loss, Scott Morrison appears set for a return to power after voters in Queensland, NSW and Tasmania rallied behind the coalition.
"Scomo deserves so much credit for tonight's result," Treasurer Josh Frydenberg said of the Prime Minister on Saturday night as he claimed victory in his blue-ribbon seat of Kooyong.
"He has been tireless, criss-crossing the country, and selling our message to the Australian people."
Mr Frydenberg had been up against human rights lawyer and Greens candidate Julian Burnside and Liberal-turned-independent Oliver Yates.
But the Greens maintained Kooyong and Higgins, with candidate Jason Ball running in the latter, remained too close to call on Saturday night.
"Those two seats could determine who the next government of this country is," party leader Richard Di Natale told his party faithful in Melbourne.
Australian Associated Press
