Labor has returned to power in Victoria on Saturday evening after only a term in the wilderness as the coalition retained its grip on the south-west.
The ALP has enjoyed a two per cent swing in its favour, increasing its hold on Geelong, Ballarat and Bendigo. Labor has picked up the south-eastern suburban electorates it lost four years ago with several knife-edge results in regional Victoria.
Premier Denis Napthine told the party faithful in Melbourne that the Coalition had left Victoria in a better position than four years ago.
He urged Labor to retain the East West Link project and build on infrastructure projects.
Dr Napthine indicated he would step down as Liberal Party leader shortly, opening the way for either Planning Minister Matthew Guy or Treasurer Michael O'Brien to become opposition leader in the next parliament.
He did not indicate whether he would continue as South West Coast's representative.
Dr Napthine paid tribute to his local campaign team headed by Leigh Allen and also acknowledged the work of his electorate staff in Warrnambool.
Premier-elect Daniel Andrews made his victory speech in front of the party faithful, thanking Dr Napthine and his family and wishing them all the best for the future.
Mr Andrews said he would not let Victorians down, and promised to get people "back to work".
He said his father and mother had taught him as a child to be true to himself and "fight for what you believe in".
He said the campaign had been a joy, particularly as his "secret weapon and best friend", wife Catherine, had joined him along the way.
For Victorians who did not vote for him or his party, Mr Andrews promised to work hard every day to win their trust for the 2018 election.