The Liberals' candidate for Eden-Monaro Fiona Kotvojs has not conceded the seat to her opposition, saying due to the slim gap between the two a win was still possible.
On the night of Monday, May 20, Labor's Mike Kelly claimed victory in the electorate, saying it was "beyond a doubt" he would be re-elected as MP.
With 83 per cent of the votes counted by Tuesday morning, he held 50.96 per cent of the votes on a two-candidate preferred basis, while Dr Kotvojs had 49.04 per cent.
Previously, she had said she expected the pre-polling votes to favour her, so by Tuesday had not yet given up the fight.
"I am surprised that Mike Kelly has already claimed victory over this seat," Dr Kotvojs said.
"There remains 16 per cent of the votes to count, the gap between he and I is 1715 votes, and as those remaining votes are being counted that gap is closing."
Dr Kotvojs said she had been performing better than Dr Kelly in the postal votes and there were more to count.
She said her chance of winning the seat was not high, but "a possibility" she would not give up on.
"In this seat I wouldn't discount anything," she said.
"This electorate is always a marginal seat, it could be a matter of 500-1000 votes.
"I've also been told that the Australian Electoral Commission (AEC) will be conducting a complete recount of the votes in Eden-Monaro because it is so close."
However, an AEC spokesperson said there had not been any reported issues with the initial count in Eden-Monaro and that a "fresh scrutiny" rather than a recount of votes was a standard process.
The election night count is always provisional and followed by a second count.
There is then a third count, undertaken to complete the full distribution of preferences for each House of Representatives election.
"Where the margin of votes between the first and second-ranked candidates at the completion of the distribution of preferences for a House election is less than 100, a full recount of all formal and informal ballot papers will be undertaken as a matter of policy," the spokesperson said.
Eden-Monaro has traditionally been a bellwether seat, with the party claiming it expected to form government; however that trend was broken in 2016.