Paterson MP Meryl Swanson says she is disappointed voters have rejected Labor's policy agenda and delivered the party what is shaping as a shock election defeat.
Ms Swanson retained Paterson but suffered a two-party swing of more than 5 per cent against her after preferences with 40 per cent of the votes counted.
But her satisfaction was tempered by the national result.
Labor presented its most progressive policy platform in years, proposing a social justice agenda funded by increased tax revenue.
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But the strategy appears not to have resonated with the electorate, who delivered a primary vote of just 33 per cent to Labor, about 4 per cent short of pollsters' predictions.
"It is disappointing. Everyone in political life, we all want the best for the country, but we have our ideas of the best way to get to that," Ms Swanson told the Newcastle Herald on Saturday night at her election party at Raymond Terrace Bowling Club.
"It is a contest of ideas, and when your ideas aren't welcomed, you need to go back and rethink your ideas."
Ms Swanson said her diminished margin, down from 10 to 5 per cent, was due to One Nation's preference deal with the Liberals.
"Last time I picked up One Nation preferences because they ran an open ticket. This time they had a deal with the Liberals and the Liberals have picked them up."
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