Labor's member for Eden-Monaro Mike Kelly appears to have bucked the trend against Labor.
With 45 per cent of votes counted, Mr Kelly has 51 per cent after preferences, compared to the Liberal Party's Peter Hendy on 49 per cent.
The southeast NSW seat has traditionally gone to the winning party of the day, but incumbent Mr Kelly believes threats of cuts to health and the public service have played into his favour.
"That was a big threat and that was certainly playing on their minds," he told the Seven Network.
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