Former treasurer Josh Frydenberg has conceded he has lost the seat of Kooyong, to 'teal' independent, Dr Monique Ryan.
For the first time, the seat will be held by a politician who isn't from the Liberal Party.
It comes as the future leadership of four Victorian seats remains in limbo as millions of postal votes are counted.
LIVE RESULTS: How your electorate is voting this election
Kooyong
Conceding today, Frydenberg said it he had called Ryan to congratulate her on the election result.
"It's been an incredible privilege to have served as the local member for the last 12 years," he said in a statement.
"Kooyong is where I grew up, and where, with my wife Amie, we are raising our family. Every day I have given the job my all."
Frydenberg said he is looking forward to spending more time with family.
Ryan said on Sunday she thought there was "momentum for change" in Australia's political system.
"I don't think any of us understands what we have achieved, we have built on a grassroots movement and it doesn't end here," she said.
Frydenberg was considered a potential leader-in-waiting of the Liberal party, but his likely exit from parliament would leave outgoing defence minister Peter Dutton in the box seat.
READ MORE: Here's how the key Victorian seats played out on election night
Ryan was steaming ahead in the contest, with 54 per cent of votes on a two-party preferred basis on Monday morning, when 71.66 per cent of votes had been counted.
However, her and Frydenberg were almost neck-and-neck when it came to first preference votes, with less than 100 separating the rivals.
Ryan has celebrated her "amazing journey" to parliament.
Ryan said received a phone call from Frydenberg to formally acknowledge his defeat this morning.
"Now, the work begins anew," she said, after thanking the 2000 volunteers and 3000 donors involved in her campaign.
Climate change action, integrity and equality for women are her main political priorities.
"Our team is preparing for the next step, helping ready me for entering parliament and immediately beginning work on our community's priorities: real and urgent action on climate change, a strong federal integrity commission, and equality, respect, and safety for women," she said.
Deakin
Liberal MP Michael Sukkar is hoping to get a fourth term as Deakin's representative, but he is in a tight contest with Labor candidate Matt Gregg.
The fight between the two is looking like it will come down to the knife's edge, with just over 1000 votes separating them on a two-party preferred basis on Monday morning, when about 80 per cent of votes had been counted.
Gregg was in the lead, however, Sukkar was leading the first preference votes, with Gregg being put in front by preferences from those who voted for Greens candidate Rob Humphreys.
FULL COVERAGE: Federal Election 2022
Menzies
Liberal MP Keith Wolahan is on track to hold onto his seat of Menzies in Melbourne's outer northeast, which has never been held by Labor.
However, Labor candidate Naomi Oakley was just 624 votes behind on a two-party preferred basis, with 71.04 per of votes having been counted.
Casey
The Liberals are looking like they will manage to keep hold of Casey, but Labor candidate Bill Brindle was trailing behind by just over 2200 votes on a two-party preferred basis on Monday morning.
New Liberal candidate Aaron Violi was also leading the number of first preference votes, with 72.19 per cent of votes having been counted.
Retiring Liberal MP and longtime Speaker Tony Smith won the seat by 4.6 per cent in 2019.
Macnamara
Labor MP Josh Burns is on track to keep hold of the seat of Macnamara, leading with about 4500 votes on a two-party preferred basis when 62.67 per cent of votes had been counted.
Liberal candidate Colleen Harkin was trailing with 42.4 per cent of the preference votes, with Greens candidate Steph Hodgins-May having picked up a significant number of first preference votes.
