Labor has declared victory in key marginal NSW seats as the coalition faces a backlash in the state.
Labor's Linda Burney has made history as the first indigenous woman elected to the House of Representatives as the coalition faces a larger-than-expected swing against it in NSW.
The two major parties were neck and neck on Saturday night with the Australian Electoral Commission declaring a 2.9 per cent swing against the coalition nationally, and a 3.2 per cent swing in NSW.
Ms Burney, the former NSW deputy Labor leader, declared an early victory over the coalition's Nick Varvaris as counting showed a three per cent swing to her.
"Barton has created history tonight in Australia by electing the first indigenous woman to the House of Representatives," a triumphant Ms Burney told Sky News.
Mr Varvaris won the seat in the 2013 election but it became a notional Labor electorate after a redrawing of electoral boundaries.
Ms Burney said while she didn't want to be pigeonholed as an indigenous MP, her passion was Aboriginal affairs.
"I want to make sure that this country tells the truth in the Australian constitution, and that's recognising first peoples," she told the Seven Network.
Labor also declared victory in the bellwether seat of Eden-Monaro, where Mike Kelly boasted an early five per cent swing against the Liberals' Peter Hendy.
The regional NSW electorate has been won by whichever party is elected to government since 1972.
Mr Kelly, a frontbencher before he lost his seat to Mr Hendy, said the campaign was won by reaching out far and wide across the community.
"We were in touch," he said.
Also on track to go to Labor was the outer southwest Sydney seat of Macarthur, where Mike Freelander had a 10 per cent swing with half of votes counted.
The seats of Banks, Robertson, Macquarie, Reid, Gilmore, Richmond, Page, and Lindsay showed tight contests, while counting in Dobell showed a four per cent swing to Labor.
Labor senator Sam Dastyari said the story for the night was his party's strong result in NSW.
"We're winning everything that we wanted to win out of NSW at the moment, and that is remarkable," he told the Seven Network on Saturday evening.