The Greens look set to win two inner-city seats in the Victorian capital, stealing Northcote and Richmond off Labor, to increase their numbers in the lower house.
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Leader Samantha Ratnam declared Saturday's results as the beginning of the end of the two party system in Victoria.
"This is a Victorian Greenslide," leader Samantha Ratnam declared.
"This is a triumphant outcome for climate action, for renters' rights, for affordable housing and for integrity in our parliament."
She blamed Labor and Liberals taking too many voters for granted, she said.
The party has retained the seats of Melbourne, Brunswick and Prahran.
The Greens also put up strong challenges in the Labor-held seats of Preston, Footscray, Pascoe Vale and Albert Park.
Northcote was first won by the Greens by now-Senator Lidia Thorpe in 2017 in a by-election following the death of Labor MP Fiona Richardson.
It went back to Labor in 2018 on a margin of just 1.7 per cent.
Campbell Gome was projected to take the seat off Labor's Kat Theophanous.
The contest for Northcote got heated in the week leading up to election day, with Ms Theophanous taking the Darebin council to court after some of her election signs were removed.
The case settled in her favour and her signs were to be untouched, but the fight was not enough to hold on to Northcote.
With long-time Labor MP Richard Wynne retiring, Richmond is also set to fall to the Greens after being under threat for some time.
Gabrielle De Vietri is projected to beat Labor's Lauren O'Dwyer after an equally-heated campaign.
Ms O'Dwyer described herself as a proud Yorta Yorta woman throughout her election campaign, but a member of her family told the ABC she holds no such ties.
She asserted her heritage, and said it was unconfirmed - like it is for many Aboriginal Australians - until she was in her early twenties.
Australian Associated Press