Labor has retained the Seat of Shortland and reversed the swing it suffered in 2019.
With 64 per cent of the vote counted, Labor's Pat Conroy held 55.4 per cent of the two party preferred vote.
Overall the party had a one per cent swing towards it.
"This victory started on this very night three years ago when we got the sucker punch of a five per cent swing against us," Mr Conroy said while claiming victory shortly after 9pm.
"Everyone in this room has helped turn Shortland into a great marginal seat campaigning team."
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Mr Conroy said he was delighted to have won booths in Eleebana and Valentine for the first time.
"They are booths that we didn't even win in 2016. It's an incredible tribute to our team," he said.
Mr Conroy claimed 39.7 per cent of first preference votes. Liberal Nell McGill claimed 32.5 per cent and the Greens' Kim Grierson 9.9 per cent.
Mr Conroy said he hoped the federal victory would flow through next year's state election.
"There are so many in this room who have had their first campaigning out of Shortland and it's a great joy that we have been able to bring so many new people into the party. Hopefully they will see fit to help Yasmin (Catley) and Jodie (Harrison) get reelected next year and us winning Lake Macquarie.
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