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The Liberal Party conceded the Wentworth by-election early on Saturday night
A swing of more than 20 per cent was in favour of independent Dr Kerryn Phelps
Her victory over Liberal candidate Dave Sharma was called after 90 minutes
But uncounted postal votes are currently being processed, making the call close

Published: 23:08 EDT, 20 October 2018 | Updated: 23:51 EDT, 20 October 2018

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High-profile independent Kerryn Phelps on Saturday night claimed victory when she achieved an unprecedented swing of more than 20 per cent in the Wentworth by-election

But that changed on Sunday as the margin between Dr Phelps and her opponent Dave Sharma narrowed to just 884 votes with postal ballots still being counted.

Prime Minister Scott Morrison, who is holding out hope Mr Sharma could still snatch a win for the government, said the result wasn't final and would depend on the count.

'We will just simply wait for that normal, robust, democratic, credible process to follow its course before we are in a position to know who the successful candidate will be at that by-election,' Mr Morrison he said.

Independent Dr Kerry Phelps made history by becoming the first independent to claim the seat of Wentworth

Prime Minister Scott Morrison called the loss of Wentworth a 'big price' for the leadership coup (pictured centre with Dave Sharma right)

ABC election analyst Antony Green, who called the win for Dr Phelps on Saturday night, said the count for four pre-poll booths and postal votes was done late on the night.

He said Saturday's voting booths where skewed to Dr Phelps, showing that there had a been a late surge for her.

Mr Morrison on Sunday again conceded the electorate had vented its anger at the government for the by-election caused when Malcolm Turnbull quit parliament after being rolled as prime minister.

'The event of two months ago angered and outraged many Liberals and particularly those in the seat of Wentworth. That's on us, the parliamentary Liberal Party.'

On Sunday, the margin between Dr Phelps (pictured) and her opponent Dave Sharma narrowed to just 884 votes with postal ballots still being counted

Prime Minister Scott Morrison , who is holding out hope Mr Sharma could still snatch a win for the government, said the result wasn't final and would depend on the count

If Dr Phelps is confirmed the winner, there will be a crossbench of six members in the House of Representatives with Labor holding 69 seats and the coalition one short of a majority with 75.

Mr Morrison on Saturday night described it as a 'tough day' and pledged to 'listen, learn and accept the blows'.

Treasurer Josh Frydenberg said the Liberal Party would continue to 'seek assurances' from crossbenchers to hold off the threat of an early election.

Dr Phelps said she would set two priorities: action on climate change and getting asylum seeker children off Nauru.

She might also lend support for a national integrity commission that has been promoted by Labor, the Greens and crossbenchers for some time.

Mr Morrison on Saturday night described it as a 'tough day' and pledged to 'listen, learn and accept the blows' (pictures is Mr Sharma)

Dr Phelps said she would set two priorities: action on climate change and getting asylum seeker children off Nauru

On Sunday, she repeated she would provide stability but not tick off on government legislation.

'I''ll support good legislation. I would reject bad legislation,' she told the Nine Network.

'We can talk about whatever is in the middle in terms of negotiating better outcomes for Australians because I think the role of the cross bench is to hold government to account.'

Independent Bob Katter said he did not want to see the government destabilised or an early election called.

Fellow independent Andrew Wilkie said he would not guarantee confidence or supply, while fellow crossbencher Cathy McGowan declined to comment.

Rebekha Sharkie said she would not hold the government to ransom.