Victorian Labor leader Daniel Andrews is set to become the 48th Premier of Victoria, thanking his wife Catherine, who he referred to as his “secret weapon” and his “best friend”.

Mr Andrews addressed Labor Party supporters at the Mulgrave Country Club to confirm incumbent Premier Denis Napthine had conceded.

IN PICTURES: Meet Daniel Andrews, the new Victorian Premier

The Labor leader’s victory is a sign of concern for Coalition Prime Minister Tony Abbott, 9NEWS Political Editor Laurie Oakes has said.

During final discussions on the 9NEWS election panel, Mr Oakes said “federal issues, federal personalities were a factor” and that “Tony Abbott and his government were a millstone around Denis Napthine’s neck”.

November 29, 2014: Nine’s political editor Laurie Oakes says the Victorian election result is a warning sign for the Abbott government.

November 29, 2014: Victorian premier-elect Daniel Andrews accepts victory for the Labor party at their headquarters.

“Victorian Liberals say it privately, they’re furious about the hug, when Tony Abbott hugged Denis Napthine he earned the enmity of virtually the entire state Liberal party,” he said.

However, Mr Andrews’ victory speech focused mostly on state issues.

“On behalf of all Victorians I want to thank Denis Napthine for his gracious concession,” he said.

“I wish Denis Napthine, his wife Peggy and their family all the very best for the future.”

Mr Andrews then turned his attention to his party’s policies and election promises.

“Victorians today have voted for better local roads and better public transport,” he said.

“Victorians have voted to end the war on our ambos.”

November 29, 2014: Federal opposition leader Bill Shorten speaks to Nine’s Seb Costello on arrival at the Victorian Labor headquarters.

Mr Andrews said Victorians had voted to get Victoria back to work.

“Work will begin tomorrow because I will not waste even a single day on delivering each of the commitments we made,” he continued.

“I will not accept four more years like the last four and neither will the people of this great state.”

November 29, 2014: Former Premier Denis Napthine concedes defeat in the Victorian election.

He then thanked the people in his electorate of Mulgrave, as well as his party colleagues.

Mr Andrews made special mention of his wife Cath, who had been dubbed his “secret weapon” during the campaign.

“I think in many respects she is our secret weapon,” he said.

“This campaign has been a joy, it has been such a humbling process to move throughout the community and to be able to do it with my best friend has been so special, Cath, thank you so much.”

Dr Napthine had conceded defeat during an address to the Liberal Party faithful at the Sofitel Hotel in Melbourne.

At 10pm Dr Napthine addressed the waiting crowd to acknowledge he had called Mr Andrews to congratulate him and officially concede defeat.

November 29, 2014: Former premier Denis Napthine ends his concession speech at the Victorian Liberal party headquarters by announcing he will step down as leader.

“The figures clearly indicate there has been a swing to the Labor party and they will have a majority in the legislative assembly,” he said.

Dr Napthine made a point of congratulating Mr Andrews on his victory.

“Can I say at the same time I am extremely proud to have had the great privilege of being the Premier of this great state of Victoria,” he continued.

“This is the greatest state in the best country in the world and I am particularly proud that today in 2014 Victoria is a better, stronger, more financially secure state then when we came to government four years ago.”

Dr Napthine also used his speech to draw attention to the changes and achievements made while he was Premier.

He also thanked Coalition candidates and their families for the support they had shown the government.

After thanking his own family, Dr Napthine announced he would be stepping down as leader of the Liberal Party.

“It is time for renewal, it is time for change,” he said.

At 8.40pm 9NEWS Political Editor Laurie Oakes called an election victory for Daniel Andrews and the Victorian Labor party.

November 29, 2014: Independent MP for Frankston Geoff Shaw has received a swift “kick” after losing his seat during the Victorian Election.

It marks the first time in 50 years a first-term government has failed to win re-election in Victoria.

But Dr Napthine was not the first person on election day to officially be shown the door.

Former Liberal MP turned Independent Geoff Shaw was the first to officially be given “The Boot” by Mr Oakes.

Introducing The Boot: Laurie Oakes gets a kick out of Nine’s new election technology

November 29, 2014: Nine’s political commentators quiz Independent MP for Frankston Geoff Shaw on the night of the Victorian Election.

Australian Greens deputy leader Adam Bandt and Victorian Greens candidate for the seat of Melbourne Ellen Sandell. (AAP)

Mr Shaw had spoken with 9NEWS about becoming an Independent and his hopes of holding on to the seat of Frankston.

Just after 8pm Mr Shaw conceded defeat.

Greens candidate Ellen Sandell is set to become the party’s first state MP, pushing ahead in the seat of Melbourne.

The party is also strongly in contention in Richmond, Brunswick and the hotly-contested seat of Prahran, where sitting Liberal member Clem Newton-Brown is likely to become one of the higher-profile MPs to lose their seat.

Celebrity candidate, rocker Tex Perkins, won nearly four percent of the vote in Albert Park, likely to be retained by Labor’s Martin Foley.

The exclusive Nine Election Day Galaxy poll has predicted victory for the Victorian Labor Party. (9NEWS)

November 29, 2014: The exclusive 9NEWS Election Day Galaxy poll has predicted a win for the Victorian Labor Party in tonight’s election.

Mr Perkins’ platform was almost solely based on saving the historic Palais Theatre in St Kilda and raising awareness for its plight.

“I knew I didn’t have to do much to make a difference – any percentage was going to make a difference,” he told Fairfax Media from Queensland, having reportedly flown up this morning.

For full coverage of the Victorian election, visit http://www.9news.com.au/victoriadecides