Labor and the Liberals are lauding local campaigns during the Dunkley by-election as both sides look for the positives after the Albanese government retained the seat against a swing.
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Community leader Jodie Belyea held the Victorian seat for Labor despite a nearly four per cent swing away from the government in Saturday's by-election triggered by the death of MP Peta Murphy in December.
But despite pulling up short, the Liberals say the swing against the government has put them in good stead at the next election - due by May 2025 - with the seat's margin cut from 6.3 per cent to 2.5 per cent.
"6.3 per cent isn't marginal in anyone's language, but this morning, it definitely is a marginal seat, in fact, is one of the most marginal seats in Victoria," Liberal frontbencher Jane Hume told Sky News on Sunday.
"It was a really good campaign, we had a fantastic candidate, we left nothing on the field ... so I think the Liberals should be proud and they should be really optimistic about our chances of the next election."
Senator Hume also pointed to the fact the Liberals' primary vote was the highest in a decade.
"I want to make sure that we not overcook it here, there's work to be done but at this stage in the electoral cycle, I think that we can take this as a very positive sign," she said.
Despite the swing against Labor, Ms Belyea recorded a slight increase in the primary vote, taking it to almost 41 per cent.
Frankston Mayor Nathan Conroy clawed a near seven per cent increase in people putting the Liberals first, up to just over 39 per cent.
Cabinet minister Jason Clare warned about drawing too much from a single by-election, which were always tough for governments.
The Greens vote went down and the fact the conservative One Nation and Clive Palmer's United Australia Party weren't in the field meant the Liberal primary vote would've gone up, he said.
"I hesitate to draw too many conclusions out of a by-election," he said.
Cost of living was a major issue and it was something the government was addressing, he said, pointing to a revamped tax cut package that gave all Australians more in the pocket.
"That's what's on everybody's mind whether they're paying bills at the supermarket or paying down their mortgage," he said.
Prime Minister Anthony Albanese joined Ms Belyea at a polling station on Saturday, his 61st birthday, and praised the strong campaign she ran.
He said Ms Murphy had recruited Ms Belyea to the party in recognition of her integrity and passion.
Ms Beylea introduced herself to cheering supporters as "a mum from Frankston with two dogs and a mortgage".
She wasn't a career politician but someone who wanted to make a difference for her community, she said.
"And I'm now going to be your strong local voice in Canberra," she said.
Ms Beylea also paid tribute to Ms Murphy as "a fierce advocate for our community".
Deputy Opposition Leader Sussan Ley said the result sent a message to the prime minister to "do something about the cost-of-living crisis".
Australian Associated Press
