Liberal Sophie Mirabella has failed to reclaim the regional Victorian seat of Indi from independent Cathy McGowan.

Ms McGowan has claimed victory in the seat for the second time, after winning the spot from Ms Mirabella at the 2013 election.

She thanked those who worked on her campaign.

"We have done something absolutely amazing," she said.

"We brought a community together. We worked together."

With more than 80 per cent of the vote counted, Ms McGowan had seen a swing in her favour of 3.3 per cent.

Addressing her supporters she acknowledged the other candidates.

"If we didn't have the competition, it wouldn't have nearly been as good - the feeling tonight," she said.

"In 2003 we had such hope ... now we've translated that into real action. Indi matters."

Ms McGowan said the Prime Minister should take note because Australians were turning to independents.

"During the last week of the campaign, he said don't vote for independents," she said.

"Clearly communities vote for who they think is best to represent them.

"I'm putting the Liberal Party on notice, saying pay attention to regional and rural Victorians, don't run scare campaigns."