Daniel Andrews and the Labor party are the winners of the Victorian state election. Courtesy Seven News

VICTORIANS have a new government after Saturday's election saw Labor claim a historic victory, dismissing the Napthine Government after only one term in office.

Labor’s Daniel Andrews is the state’s new premier as a statewide swing of 3 per cent against the Liberals delivered a historic victory to the opposition.

The historic result saw the state dump its government from power after a single term for the first time in more than 60 years.

A tight victory was predicted for Labor but the result was called early. Outgoing Premier Dr Napthine called Mr Andrews just before 10pm to concede defeat.

“The people of Victoria have today given to us the greatest of gifts, entrusted to us the greatest of responsibilities and bestowed upon us the greatest of honours and, ladies and gentlemen, we will not let them down,” Andrews told Labor faithful as he claimed victory.

Forty-five seats were needed to win and Labor was on track to win 47.

Before the election, Labor held 43 seats, the Coalition 44, and rogue MP Geoff Shaw the remaining seat in the 88-seat Legislative Assembly.

With the swing to Labor, it is likely to pick up between three to six extra seats, but will lose Melbourne to the Greens.

11.00: The blame game over the Coalition’s loss in today’s Victorian election has begun with former premier Jeff Kennet unloading on the Abbott Government.

Mr Kennett has labelled the Abbott Government as a “shambles” and admitted it was a major factor in the defeat of the state government.

Conceding that the outgoing Victorian Premier Denis Napthine was too loyal and should have taken on the Prime Minister, Mr Kennett said there was no doubt that the Abbott Government had been a “major factor’’.

“He never called Tony Abbott to account. Tony was putting tax on him after tax on him. He wouldn’t have done it in NSW,” he said.

More: Jeff Kennett points to Tony Abbott as blame game begins

10.20: Daniel Andrews has thanked Victorians for giving him the greatest honour by electing his Labor Party into government.

“The people of Victoria have today given to us the greatest of gifts,” the incoming premier said in claiming victory on Saturday night.

“They’ve entrusted to us the greatest of responsibilities and bestowed upon us the greatest of honour.

“Ladies and gentlemen, we will not let them down.” He thanked outgoing premier Denis Napthine, who earlier called the Labor leader to concede defeat.

“I want to thank Denis Napthine for his gracious concession. I want to acknowledge his service to his local community and this state,” Mr Andrews said.

I congratulate Premier-elect, @DanielAndrewsMP and his @VictorianLabor team on this outstanding election result #vicvotes — Bill Shorten (@billshortenmp) November 29, 2014

Congrats to Premier-Elect @DanielAndrewsMP on a strong win in Victoria. K — Kevin Rudd (@MrKRudd) November 29, 2014

Congratulations to @DanielAndrewsMP & the team. An historic Labor win. Victoria will benefit from the great plans for the future. JG — Julia Gillard (@JuliaGillard) November 29, 2014

10.00: Outgoing Premier Denis Napthine has conceded defeat and confirmed he will stand down as leader of the Victorian Liberal party.

With his wife Peggy and children by his side, a solemn Dr Napthine told the crowd at the Sofitel that he had been proud to have led the state.

“I am extremely proud to have had the honour and privilege to be the premier of this great state of Victoria,” he said.

“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 than when we came to government four years ago.”

Labor has won Victoria’s state election removing the Napthine Government after just one term in power.

More than half the vote has been counted putting Labor on track to take power in 45 seats or more needed to win the election.

If trends continue it will be the first time in over 50 years a first term government has failed to win re-election in the state.

9.20: Premier Denis Napthine is expected to concede very soon to tell the Liberal party they have lost the state election.

Sky News is reporting the premier has contacted incoming premier Daniel Andrews.

8.45: A sparse, subdued crowd gathered at Melbourne’s Sofitel for the Liberal party post-election function. To call the event a party would be misleading — spirits are low, AAP reports.

Premier Denis Napthine arrived around 6.30pm but retreated to a private room to watch the count with wife Peggy.

Dr Napthine is not expected to appear until it is time for one of the party leaders to make a concession speech, in all likelihood it will be him.

8.30: Celebrations have kicked off in Melbourne with news the Greens have won the inner city seat.

Ellen Sandell was loudly cheered as she thanked the party faithful for their support in winning the Greens’ first ever lower house Victorian seat at underground inner city laneway bar.

“This victory doesn’t belong to me at all, it belongs to all that knocked on doors, made calls and spent your evenings, your nights working for the Greens,” Ms Sandell, 29, told those gathered at a bar in the Melbourne CBD on Saturday night.

“I’ll work every day starting tomorrow for a fairer society and a cleaner economy.” The Greens, with 26 per cent of the vote counted, had 51 per cent on a two-party preferred basis, putting the party on track to remove Labor’s Jennifer Kanis.

8.05: With 36 per cent of the vote counted, the ABC has called a change of government for Victoria.

8.00: Former federal treasurer Peter Costello, after just under 30 per cent of the vote had been counted, warned that the Liberal Party had to win in Ballarat if it was to protect against losses in the so-called Melbourne sandbelt seats.

“I don’t like what I’m seeing,” said Mr Costello, who is on the Nine Network panel.

“I think that the Liberal Party had to win in Ballarat to take out some insurance against the sandbelt.” The Greens also look like they will pick up two seats in inner-Melbourne.

7.40: Almost a quarter of the votes have been counted and some are already calling a Labor victory in the Victorian state election.

Former Labort premier Steve Bracks has said he is confident.

“I’m reading it as a very likely Labor win. I’d say it’s almost certain now,” he told ABC.

ABC has Labor on 44 of the 45 seats it needs to make the Coalition Victoria’s first one-term government since Labor was voted out in 1955.

7.30: Sky News has called the Victorian election for Labor.

#BREAKING: Bruce Hawker and Richard Marles call a #Labor win in #vicvotes — Sky News Australia (@SkyNewsAust) November 29, 2014

While counting is still in early stages, Labor is on course to pick up seats in the state election

7.20: With almost 15 per cent of the votes counted, Labor is on track for its predicted narrow victory in the Victoria state election.

Early counting has put Labor slightly ahead on 39 seats compared to the Coalition’s 36.

Labor needs 45 seats to make the Coalition Victoria’s first one-term government since Labor was voted out in 1955.

ABC election analyst Antony Green said there was a clear shift towards Labor.

“It’s not enough to call it but we are starting to see the shift that has been expected,” he told the ABC.

“It’s hard to do it in terms of individual seats but at the moment we are seeing that those figures will indicate Labor will gain seats at this election.”

6.00: Early exit polls suggest a Labor win in the Victorian state election, but Opposition Leader Daniel Andrews says he won’t take anything for granted.

Mr Andrews’ hopes of emerging as the state’s next Premier could already be locked in the pre-poll box with strategists confident Labor has won a clear majority among early voters.

Exit polls of early votes cast in the lead up to today’s state election are believed to have delivered a 52.5 per cent share of the two-party preferred vote to Labor.

The pre-poll votes are significant because up to one in three Victorians are believed to have voted early. However, the pre-poll votes will not be counted until Monday.

Since that time, the Napthine Government is expected to have gained some ground in the lead-up to today’s state election.

Premier Denis Napthine has arrived at his Melbourne hotel to wait out the count.

EARLIER: Candidates in the Victorian state election have hit the polling booths in what looks set to be a narrow victory for Labor.

After a busy start, voting is running smoothly and making good progress.

A spokesman for the Victorian Electoral Commission (VEC) said there had been queuing in some areas due to the morning rush, but that had now settled down.

“A lot of people turned out early, as we expected, so there are some queues in areas but they will thin out,” he said. “The afternoon is the sweet spot.”

Polls close at 6pm.

Premier Denis Napthine hit the hustings early as he campaigned to the last minute in his home electorate in Portland.

Speaking to Sky News after casting his vote at Port Fairy, Dr Napthine said he hoped voters would consider their vote carefully. “If they choose people who they trust to run the economy they'll be voting for the Coalition,” he said.

LIVE from Port Fairy where @Vic_Premier will vote this hour. The snags are delicious! #vicvotes pic.twitter.com/QtJGyJ0J5i (@SimoLove) — Sky News Australia (@SkyNewsAust) November 29, 2014

The Herald Sun reports Dr Napthine stopped his media rounds to check on a young koala’s condition on the side of the road.

Opposition Leader Daniel Andrews said he wasn’t taking anything for granted as he voted at Albany Rise Primary School in his Mulgrave electorate (where the lack of a sausage sizzle was a point of contention).

.@CathLAndrews and I cast our votes this morning at Albany Rise Primary. Beautiful weather for election day #vicvotes pic.twitter.com/2BCDNVb5r9 — Daniel Andrews (@DanielAndrewsMP) November 29, 2014

“I’ve never taken anything in my life for granted and I certainly won’t take the people of Victoria for granted,” he told reporters.

The major parties are divided on the East West Link, with Mr Andrews vowing to tear up contracts if he claims victory.

"I'm a typical man, I can't stop touching things on the barbecue." #vicvotes pic.twitter.com/TbuYs4Darw — Jono Pech (@JonoHimself) November 29, 2014

Both Dr Napthine and Mr Andrews agree the race will be close, although polls indicate Labor could retake government after only one term in opposition.

Dr Napthine’s office said he had voted about 11am at Port Fairy in his South-West Coast seat.

He has urged voters to consider their options and vote for a stable coalition with a strong track record.

Long queues to vote in Brunswick today but in outer East I'm told numbers are down due to high pre-polling #vicvotes pic.twitter.com/2lV7nm2YvO — Michelle Ainsworth (@mlainsworth) November 29, 2014

“Victorians need to consider their vote carefully because the worst thing for Victoria would be to wake up on Sunday morning and have a Greens, Labor and CFMEU-dominated government,” Dr Napthine told Nine Network on Saturday morning.

Three polls released on election eve had Labor still in front, leading 52-48 on a two-party preferred basis.

The latest Newspoll published by the Weekend Australian puts Labor’s primary vote at 39 per cent, the coalition’s at 40 per cent, and the Greens at 12 per cent.

Dr Napthine’s satisfaction rating has fallen five points to 41 per cent, while Mr Andrews’ stands at 37 per cent.

Moreland Primary in Brunswick has a cake stall, a halal sausage sizzle and a @Jane_GarrettMP #vicvotes #springst pic.twitter.com/WK6wjfA20H — Rachel Baxendale (@rachelbaxendale) November 29, 2014

Mr Andrews said the election wasn’t about personality.

“It’s not about those things (personality), it’s about making sure that you be yourself, work hard and fight hard for the things that you believe in,” he told Nine.

Line at #vicvotes polling booth at Aldercourt Primary School in Frankston. Sadly no sausage sizzle yet #springst pic.twitter.com/NxsZCqYMgp — Annika Smethurst (@annikasmethurst) November 29, 2014

The coalition has 44 seats in Victoria’s 88-seat parliament, Labor has 43, with one independent.

Labor needs two seats to make the coalition Victoria’s first one-term government since 1955.

Greens leader Greg Barber on Saturday said he was confident the Greens could win the balance of power.

About 2.5 million Victorians will cast their votes on Saturday and a record 1.1 million have already lodged a pre-poll vote, either an early or postal vote.

The pre-poll vote count does not get under way until Monday, meaning no clear winner could emerge from the general vote count.

EARLIER: Victorian Labor is on the brink of victory.

An election-eve Newspoll published by the Weekend Australian shows the ALP holding a 52 per cent to 48 per cent lead on a two-party-preferred basis.

The poll puts Labor’s primary vote at 39 per cent, the coalition’s at 40 per cent and the Greens’ at 12 per cent.

Premier Denis Napthine’s satisfaction rating has fallen five points to 41 per cent, while opposition leader Daniel Andrews’ stands at 37 per cent.

About 2.5 million Victorians will cast their votes as polling booths open from 8am to 6pm on Saturday.

A Labor win would render the Napthine government Victoria’s first one-term administration since 1955.