Defeated Labor MP Maxine McKew (Bennelong) has criticised her party's election campaign after conceding defeat in the seat she took from former Prime Minister John Howard in the 2007 election.
However, the former ABC journalist held the seat with a majority of only 1.4%.
She was challenged and beaten by another high-profile candidate - former tennis player John Alexander.
Ms McKew told the ABC that Labor's election campaign has left a lot to be desired.
"There are some very big questions for the Labor Party given what has happened tonight," she said.
"We shouldn't be on a knife-edge tonight and we shouldn't be losing colleagues all over the country."
Ms McKew said that in 2007 the party had run a professional, targeted, clear campaign and should have made more of its economic credentials this time around.
She was then asked if the removal of Kevin Rudd had adversely affected Labor's chances.
"Clearly you cannot have the removal of a Labor leader and prime minister and two months later have an election and not have that play into the outcome," she said.