"It was said if we won the seat of Wentworth, it would make history, and, my friends, we have made history today," she said. Dr Phelps described her victory as a"David and Goliath struggle" and a "great moment for Australian democracy." Prime Minister Scott Morrison spoke to the Liberal party faithful at the InterContinental Hotel in Double Bay on Saturday night, praising their candidate Dave Sharma who he described as outstanding. "This is on the Liberals, not on Dave Sharma," Mr Morrison told the packed function room.

Loading Replay Replay video Play video Play video "When I took this job, I said there would be tough days and great days. This is a tough day but the great days are coming," Mr Morrison said. "We will stand up for what we believe in until the bell rings and the bell hasn't rung, Liberals." Mr Morrison, joined by his deputy Josh Frydenberg, said the government would "work constructively with all those on the crossbench." "We have paid a great price for the events of a few months ago," Mr Morrison said, referring to the former Wentworth member Malcolm Turnbull being deposed as prime minister after a bloody internal coup.

Supporters cheer as the ABC predict a win for Independent candidate Kerryn Phelps during a Wentworth byelection evening function. Credit:AAP Dr Phelps, a local GP who has worked in Double Bay for 20 years, insisted throughout the campaign that she did not pose a risk to the Coalition government if she won. Mr Sharma, a former ambassador to Israel who endured a bitter preselection battle in order to contest Wentworth, addressed the crowd after being welcomed with chants of support. "This is over tonight a little sooner than I expected, and I am certainly glad I kept my day job," he joked. He paid tribute to Dr Phelps, as well as the Labor candidate Tim Murray, and Mr Turnbull and his wife Lucy.

Liberal Candidate for Wentworth, Dave Sharma, after conceding defeat. Credit:Dominic Lorrimer Mr Sharma said Mr Turnbull, who has been out of the country since he lost the leadership, had been a "fine Australian over many years" and he had been a supporter of his throughout the campaign. "I am sorry Malcolm couldn't be here tonight," Mr Sharma said. Dr Phelps said her win should be an encouragement for other independents wanting to enter public life. "This win tonight should signal a return of decency, integrity and humanity to the Australian government. And let's hope for a bit of common-sense on climate action," she said.

Prime Minister Scott Morrison embraces Liberal candidate Dave Sharma prior to his concession speech. Credit:AAP "I would like to say [to] any young people, any women, any aspiring independents out there, if you are thinking of running for Parliament or running for public office, yes, it can be tough, yes, the road can be hard, but it is so worthwhile that we have the right people stepping up to represent Australia." Meanwhile, there was already discussion about who would contest Wentworth in next year's general election, with Tony Abbott's sister Christine Forster and Lucy Turnbull's brother Michael Hughes possibilities. The party has stressed that they would be keen to run Mr Sharma again but it is not clear whether the former ambassador and father-of-three would be prepared to contest it again. It is understood that Mr Sharma is not interested in a Senate seat, and the only one available to him would be the spot promised to Andrew Bragg, who pulled out of the preselection race because he felt a female candidate was the Liberal's best hope in Wentworth.

Mr Bragg is close to Malcolm Turnbull, ran the Liberals' Yes campaign in the same-sex marriage plebiscite and is president of the party's Paddington branch.