The newly re-elected Victorian premier, Daniel Andrews, says the emphatic victory for his Labor team shows voters want governments that deliver, a warning for the troubled Morrison government as a federal election looms.

“I am certain that Victorians have just about had enough of a federal government that cuts hospitals, cans schools, and refuses to admit they have done it. That is what really makes people angry,” Andrews told the Nine Network on Sunday.

“They want politicians who say what they are going to do, and then get on and do it. Where that leaves (the prime minister Scott) Morrison I leave it for you to judge.”

On day one of term two, Andrews did the rounds on breakfast television, championing his “positive and optimistic plan” for the state and decrying the Liberal-Nationals’ attempts to “scare” their way into power.

Victorian Labor will return to majority government with as many as 16 more seats following the ballot result that shocked even the winners.

As of Sunday morning, about 71 per cent of lower house ballots had been counted and Labor grabbed 52 seats, with another 10 in doubt.

The Coalition lost half of its seats and calls were being made for senior Liberal party figures to resign. The opposition leader Matthew Guy conceded defeat.

Play Video 0:58 Victorian State Election 2018: labor supporters celebrate as Daniel Andrews wins - video

The Coalition vote also collapsed in electorates traditionally held by conservatives, including in eastern suburbs such as Ringwood, where there was a swing toward Labor of more than 9%, and the blue-ribbon Hawthorn, held by the shadow attorney general, John Pessuto, but under threat of falling to Labor.

Victorian state election 2018: Daniel Andrews says voters 'rejected fear' after Liberal wipeout – live Read more

“We did a lot of things right but obviously something has gone horribly wrong,” Pessuto said. “So we’re going to clearly have to do a root and branch review. We shouldn’t be in this position.”

The result makes Andrews the first premier to win a second term since Steve Bracks in 2006. An alleged terrorist attack in the city just one fortnight before the election fuelled the Coalition’s law and order campaign, but this failed to sway voters and appears to have worked against them. The ABC psephologist Antony Green had called victory for Labor by 7.20pm.

Andrews told party faithful at Labor party headquarters in Mulgrave that Labor was “the most progressive government in the nation” and that voters had “in record numbers rejected the low road of fear and division”.

“And for that, I am very, very proud.”

The federal Greens leader, Richard Di Natale, said Victorians had “comprehensively” rejected the tough-on-crime messaging of the Coalition, which he said had the potential to “divide the Australian community” and “attack” multiculturalism.

“I thought the Victorian community said very loudly and clearly: ‘We reject a campaign based on fear and division’,” Di Natale said. “I want to congratulate Daniel Andrews and the Labor party.”

But the Greens were headed towards a disappointing result, with Brunswick on a knife-edge despite the party running a comprehensive campaign there and predictions they would gain they seat. The party was also projected to lose Northcote and in difficulty in their seat of Prahran. Albert Park and Richmond, also seats where the Greens had hoped to make gains, were seeing swings towards Labor. The party’s hopes of forming minority government were dashed.

While analysts focused on critical bellwether seats like on the Frankston line like Bentleigh, Mordialloc, Carrum and Frankston, all won by the party forming government at the last four elections, the swing against the Liberal party in seats believed to be safe was unprecedented. In the very safe seat of Box Hill in the east, for example, there was a 14% swing towards Labor. In Ferntree Gully, held by the Liberals by 7.7%, there was an 8.7% swing against the Liberals by the time 21.7% of the vote was counted. The Liberals held the affluent bayside electorate of Brighton by 9.7% at the last election but by 10pm the 19-year-old Labor candidate, Declan Martin, was only marginally behind.

There were shouts of joy and chants of “four more years” in Mulgrave as more seats kept falling Labor’s way. Statewide, Labor saw a swing towards it of about 6%. The Coalition was projected to hold just 17 seats at most.

“About those who today could not see their way clear to support our positive and optimistic plan … we will still govern for you, we will govern for all Victorians,” Andrews said in Mulgrave. “We will make sure that regardless of how you voted, we will have better schools, we will have better hospitals, we will build the infrastructure we need and create the jobs that are so important.”

Victorian Labor is far from perfect but the Libs' crime scare deserves to fail | Gay Alcorn Read more

The leadership spill three months ago, which saw Malcolm Turnbull, popular in parts of Victoria, replaced by Scott Morrison, had an impact. Federal politics played a part in the Coalition bloodbath, the shadow education minister, Tim Smith, said.

“When you’ve got federal politicians talking about themselves and their various ambitions, that hasn’t helped our party like it didn’t help Labor during the Rudd Gillard years,” he said.

In his concession speech the Liberal leader, Matthew Guy, said his party had campaigned on issues “of the most importance to Victorians”.

“Tonight is clearly not our night,” he said. “We know that. We acknowledge that. We accept that.” Immediately after his short speech Guy left the stage and shut himself in an administration office, while his colleagues cleared out of the venue at the Veneto Club in Bulleen by 9.30pm. Guy left the venue without giving interviews.

The former Victorian premier Jeff Kennett called on the Liberal party state president, Michael Kroger, to resign.

“Michael, if you’re listening, it’s 8.20pm – by midnight, I hope your resignation is on the floor,” Kennett told Seven News.

As the night went on there were also signs of possible upsets in the regions, somewhat overshadowed by Labor’s overwhelming victory. Cathy McGowan-endorsed independent Jacqui Hawkins remains in with a shot in Benambra in Victoria’s north-east, while Ali Cupper is also a chance of nabbing Mildura from the Nationals.