Labor's Katelin McInerney has called her political opponent Gareth Ward to concede the seat of Kiama, after he gained a lead she couldn't overcome as the vote count continued on Wednesday.
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"It has become clear that Labor will not win the seat of Kiama," she said.
"While the result is disappointing, I am incredibly proud of the positive and disciplined campaign we have run to give both Kiama and NSW a fresh start."
"I put my hand up to run for the seat of Kiama to make sure that my son William and kids just like him could grow up in the best future possible."
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"While we will not get across the line in Kiama, I am glad that the people of NSW voted for a fresh start and I look forward to a new Labor government delivering for our community."
"I would like to thank all my supporters, my campaign team and my family for your help over the last few months - I couldn't have done it without you."
"After a long campaign, I am looking forward to spending some time with my family and continuing to advocate for my community to make sure we get the fresh start we deserve."
Despite Ms McInerney's early lead thanks to a big swing towards Labor, Mr Ward pulled ahead in the count on Tuesday afternoon when the votes from Nowra early voting centre came in.
On a two-candidate preferred vote, he remains on 50.8 per cent, while Ms McInerney has 49.2 per cent of the vote.
As of Wednesday, there were 615 votes splitting the two candidates after preferences.
There are still postal votes to come in - which, as they skew older, are likely to go Mr Ward's way - which means the final count will likely continue to shift to Mr Ward but may not be known for some time.
ABC election guru Antony Green has called the seat for Mr Ward, saying he had an unassailable lead.
In the lead up to the election - when Mr Ward's camp said their polling indicated her would win - Ms McInerney acknowledged that she would have to overcome a huge margin.
She said she believed there was a "feeling of wanting change in the hearts and minds of people".
The former journalist and union director told the Mercury she was committed to staying as Labor's candidate for another run.
"I'm hoping that won't be necessary, but we're here and invested and building our life here," she said last week.
"It's lovely to be raising our kids alongside mates from school and uni, so I'm not going anywhere."