Newcastle had delivered a ringing endorsement of Labor's progressive policies even if other parts of the country didn't see it that way, re-elected Newcastle MP Sharon Claydon said.
Ms Claydon received a hero's reception when she declared victory just after 8pm at the Sunnyside Tavern in Georgetown on Saturday night
"The people of Newcastle have locked in rock solid behind Labor," she told the party's faithful.
"I feel incredibly honoured to have the trust of the Newcastle people, to be your representative in Parliament. It's a job I take deeply seriously."
With 80 per cent of the Newcastle vote counted Labor had secured 64 per cent of the two party preferred vote. The result represented a 0.4 per cent swing away from Labor.
Ms Claydon's primary vote was on 46 per cent, down 1.1 per cent.
Liberal Party candidate Katrina Wark recorded 29 per cent of the vote, a 0.9 per cent away from the party.
The Greens' John MacKenzie recorded 15.6 per cent of the vote, a 1.9 per cent increase. United Australia Party candidate Geoffrey Scully recorded 3.3 per cent of the vote while other candidates recorded 6.1 per cent of the vote.
"I think the message from Newcastle people is a very loud endorsement of a Labor agenda. That is an economy that has to work for everyone," Ms Claydon said.
"Prosperity needs to be shared and not leaving parts of our economy to one side and that's what a lot of people in Newcastle have experienced.
"It was a bold, progressive agenda for Labor and I was super proud to execute that in Newcastle and it was absolutely the right thing to do."
Among those in attendance at the celebrations was former federal Newcastle MP Allan Morris.
Mr Morris, who represented Newcastle between 1983 and 2001, spoke about the significance of the Hawke government, of which he was a member.
"In August 1982 the BHP shed 5000 people from its staff and another 5000 contractors; a lot of those men never worked again," he said.
"To keep up morale we had to make decisions in the face of all that. Hawke and Keating and that incredible line-up of ministers used to have trust.
"Even though the economy was really difficult in 84, 87, 90 people still put their trust in us because there was still respect, for the parliamentarians, the prime minister and the cabinet."