The Liberals are facing a wipeout in Australia's second-most populated city.
Melbourne was viewed as Peter Dutton's narrow path to government but instead it pulled the rug out from under him.
Liberal frontbencher Michael Sukkar and first-term MP Keith Wolahan are projected to lose their seats of Menzies and Deakin, respectively, in Melbourne's east.
The Liberals are also narrowly trailing further east in Casey, although the result was too close to call late on Saturday night.
The potential losses would leave the party without a single seat in inner or middle Melbourne, and the coalition with just seven seats across the entire state.
Menzies was one of Anthony Albanese's final stops of the campaign, pressing the flesh with Labor candidate Gabriel Ng at a polling booth on Saturday morning.
The traditional blue-ribbon seat was won by Mr Wolahan by 0.7 per cent in 2022 but notionally flipped to Labor after redistribution.
Deakin was held on an even thinner buffer of 0.02 per cent, making it the most marginal in the country.
The Liberals also came up empty in attempts to claim the Labor seats of Aston - lost in a 2023 by-election - Chisholm, McEwen and Hawke.
Labor had been sandbagging a raft of Victorian seats, fearing backlash because of the unpopularity of the Allan state government.
But after a strong campaign, the traditionally progressive state has swung further behind it.
"Victoria has been a stronghold for us federally for a long time," Deputy Prime Minister Richard Marles said on the Nine Network.
"There's a lot of seats to defend here, but it's really important that we are able to achieve that outcome."
The southeast Melbourne seat of Goldstein, held by teal independent MP Zoe Daniel, was also set for status quo despite a Liberal push to reclaim it.
Ms Daniel was in pole position ahead of former Liberal frontbencher Tim Wilson, leading by about 2.2 per cent with almost a third of the vote counted.
Liberal frontbencher Dan Tehan fared better against former Triple J host-turned-independent candidate Alex Dyson, retaining the seat of Wannon in Victoria's west.
Labor MP Peter Khalil was narrowly ahead of high-profile Greens candidate Samantha Ratnam in Wills, while fellow Labor backbencher Josh Burns looks to have easily retained the seat of Macnamara.
