Victorian election loss reignites Liberal infighting as Daniel Andrews praises voters

Andrews says Victorians smarter, more generous than Liberals gave them credit

Victorians have been severely underestimated by Matthew Guy and his Coalition, according to the Premier Daniel Andrews, who last night stormed to a second term as the Opposition fell apart at the polls.

After less than 90 minutes of counting, the ABC's election analyst Antony Green called the result for Labor, which is now expected to seize 55 seats in the state's 88-seat Lower House.

The party now looks set to claim the eastern suburban seats of Box Hill, Burwood and Mount Waverley.

Daniel Andrews lifts a fist into the air as he goes on stage at Labor's election party.

It has also enjoyed comfortable swings in Melbourne's "sandbelt" seats of Bentleigh, Carrum, Mordialloc and Frankston, which were crucial to its success.

But last night's result was disastrous for the Coalition, which was bruised at the ballot box.

The ABC's election computer is now forecasting the Opposition will win just 28 seats, compared to the 37 it had before the poll.

Mr Andrews said voters had seen past the Coalition's rhetoric on key social issues such as the North Richmond safe injecting room trial and the Safe Schools Program.

Daniel Andrews' mother, Jan, places her hands on his face as he arrives at Labor's election party.

"This is the most progressive state in our nation. Victorians are smart. Victorians have big hearts," he told the ABC's Insiders program.

"The safe injecting facility saves lives. Safe Schools saves lives. And we've seen some pretty low-road campaigns against both of those initiatives," he said.

"Victorians I think are a lot more generous and a lot smarter than our opponents thought they were.

"They want big, broad, bold politics. Not this narrow, nasty stuff that was on offer, and it was rejected comprehensively yesterday."

'What's happened in Canberra has been a factor'

Last night's result has prompted serious soul searching within the Liberal Party.

But senior federal Liberal frontbenchers appear divided on whether the party's internal ructions, including the knifing of former prime minister Malcolm Turnbull, affected its chances in Victoria.

Victorian frontbencher Greg Hunt, who signed a petition calling for a leadership spill, played down suggestions turmoil in the federal Liberal Party hurt the state campaign.

Matthew Guy waves to the Liberal Party faithful with his wife Renae by his side.

"Overwhelmingly the state campaign was fought on state issues," Mr Hunt said.

"We need to look at what has been successful federally and why there's a gap here in Victoria."

His Liberal colleague, Sarah Henderson, agreed it was a state issue-based campaign, but acknowledged the party's leadership issues played a part in the result.

"Yes, of course, what happened in Canberra has been a factor," she said.

Last night, Victorian Liberal senator Jane Hume said "there is no doubt" the toppling of Mr Turnbull as prime minister had an impact on the election result.

"I can only apologise, JP [John Pesutto]," she said on ABC's election broadcast.

Jane Hume speaks while seated at the ABC's election panel.

"[The leadership change] was driven clearly by Queensland, but there were some Victorians involved and I don't know if they had their state colleagues front and centre of mind when that happened and it is a shame," she said.

"Don't think it is a reflection on [Prime Minister] Scott Morrison … it is just the disruption that was caused by the loss of Malcolm Turnbull."

Labor says Coalition 'in denial'

Federal Labor MPs have seized on the Victorian result as an indication the Coalition may struggle at the next federal poll.

"I think if the federal Liberals think that this is just all about state issues, they're in denial," senior Victorian frontbencher Brendan O'Connor said.

Brendan O'Connor sits in a television studio.

"Clearly the division, dysfunction, disunity, the civil war within the Liberal Party in Canberra has certainly contributed to the scale of the victory in Victoria yesterday.

"The fact is that tearing down a prime minister has significant costs to any party, and we're seeing that as a result of the efforts by many Victorian federal Liberals too, who of course were the architects of the destruction of Malcolm Turnbull."

Meanwhile, infighting has also broken out in the Victorian Liberal Party and there have been calls for its president, Michael Kroger, to stand down.

"I will say this, if there's one person who should stand down tonight it is Michael Kroger," former Liberal premier Jeff Kennett told Channel Seven last night.

"Because I think his leadership of the party over recent times has been appalling.

"Michael, if you're listening, it's 8:20, by midnight I hope your resignation is on the floor."

Public unable to resist big spending, Liberals say

But this morning Mr Kroger, who will not recontest the presidency in March, said he saw no reason to resign.

"Presidents aren't running for election in elections," he told Melbourne radio station 3AW.

He instead praised the party for running "a very good campaign".

Victorian Liberal Party president Michael Kroger walks through the party's event on election night.

"We spent more on this campaign than ever before," Mr Kroger said.

"It's hard for a public to resist huge amounts of public expenditure and we think overwhelmingly that's what's happened ultimately in this election," he said.

"We were beaten on policy in this election … Andrews did a good job as Premier, you'd be foolish to deny that.

"No one's saying the parliamentary party has stuffed this up."

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