With still more than a week to go before the poll is officially declared, Mr Cheeseman was confident his 735 vote lead yesterday afternoon provided him with enough buffer to get over the line ahead of Liberal challenger Sarah Henderson.

"We think the lead is too great for her to be able to pull it back with the last votes in the next few days," he said.

"However, the official champagne corks will not be popped until next week when the poll is declared."

Ms Henderson was not conceding defeat yesterday.

"We closed the gap again today and it is still mathematically possible for the Liberal Party to win Corangamite," she said.

"While it appears Mr Cheeseman will hold the seat, the outcome will not be known until the last couple of thousand votes are counted."

Corangamite will be crucial in forming a new government after Australia's cliff-hanger election result which left the ALP and Coalition having to scramble to woo support from four independents and Melbourne Greens party MP Adam Bandt to form a government team.

Mr Cheeseman spoke to Prime Minister Julia Gillard on Monday and expects to travel to Canberra in the next few weeks.

"It was one of the most marginal seats in Australia and clearly will be crucial in forming government," he said.

"This has been the last seat in the nation to be called and will help us secure the right to negotiate to form government."

Mr Cheeseman won the Liberal stronghold in 2007 by 1500 votes and was a slim favourite to become the first Labor member to retain the south-west seat since it was formed 109 years ago.

"This is a great moment in Labor history in our region, but more importantly it is a clear statement that people do not want to be taken for granted," he said.

"Corangamite is a classic Australian electorate where the vast bulk of people do not classify themselves as Labor or Liberal diehards, but they have their hopes and dreams for themselves and their children.

"They want their government to provide opportunities for a good and decent life and, if possible, a chance for some of their hopes to be realised.

Mr Cheeseman said he reminded Ms Gillard on Monday that the development of regional Australia should be a feature of any agreement between Labor and the independents .