UPDATE: Zoe Mckenzie has retained her seat of Flinders – Read story.

In the Division of Dunkley, Labor’s Jodie Belyea is projected to retain her seat, fending off a challenge from Liberal candidate Nathan Conroy. With more than half the vote counted, Belyea is leading on both first preferences and the two-party-preferred count.

Dunkley was considered a crucial seat for both major parties and was among those targeted by the Coalition in its attempt to form government.

Meanwhile, the neighbouring electorate of Flinders remains too close to call. Sitting Liberal MP Zoe McKenzie is facing challenges from Independent Ben Smith and Labor’s Sarah Race in what has developed into a tight three-way contest.

As of 9pm AEDT, the Australian Electoral Commission had not declared a result in Flinders. A high number of early and postal votes are still to be counted, and the outcome may not be known for several days.

Across the country, Labor is projected to form government in its own right. The ABC called the election for Labor shortly before 8pm AEDT, based on national trends and confirmed seat projections.

The Mornington Peninsula region remains under close observation, with final results in several booths still being reported.