After 30 years in politics, Pauline Hanson has finally won a lower house seat in the federal parliament, setting up shocks for the major parties.

One Nation has won its first federal Lower House seat at the ballot box in a historic result breaking the Coalition’s 77-year hold on the NSW seat of Farrer.

The populist party’s David Farley defeated fellow frontrunner Michelle Milthorpe and coalition candidates Raissa Butkowski and Brad Robertson to clinch the seat, commanding a double-digit lead within two hours of polls closing.

“This is not only a win for Farrer, it’s a win for the rest of Australia,” One Nation Pauline Hanson said after victory was declared.

One Nation leader Pauline Hanson has celebrated with supporters at a watch party. Picture: NewsWire / Simon Dallinger

One Nation’s David Farley is the new member for the long-held Coalition seat of Farrer. Picture: NewsWire / Simon Dallinger

Earlier she said it would be “a win for our nation”.

“We are going to work hard now for this electorate and our nation.”

She said voters “realised that we are the last hope of changing things in this country”

“People have fear for the future generations, no hope of owning their own home, you know? And the cost of living is just destroying families,” she said.

Shortly after, Mr Farley claimed victory.

“We’re like a mason with a chisel and a hammer, and we’re carving letters into the Australian democracy,” Mr Farley told supporters at the official watch party in Albury.

Flanked by Senator Hanson and soon-to-be lower house colleague Barnaby Joyce, Mr Farley said the party “has reached the end of its beginning”.

“We’re going through the ceiling,” he said, calling the win his “biggest achievement” and the “most euphoric experience” he has had.

He went on to name water, health and immigration as his other key concerns.

“We’re not going to implode any of our industries that are reliant on good quality, assimilating migrants into the country,” he said.

“But we’re not going to entertain people to come here and live off our balance sheet, our purse and give us nothing.”

Senator Hanson says One Nation is ‘the last hope of changing things in this country’. Picture: NewsWire / Simon Dallinger

Mr Farley vowed to focus on cost-of-living, saying his first order of business was “this damn net zero crap”.

“It’s not what Australia wants and it’s not what Australia needs,” he said.

“We’ve got to have a policy that first Australia, not the world.”

Commenting on his fellow candidates, Mr Farley said “they fought well” but questioned if they fought cleanly.

‘We are where we are’

Ms Milthorpe was teary eyed as she addressed her supporters to concede defeat.

The long-time teacher and advocate for child sexual abuse survivors has now failed twice to win Farrer but drawn hefty support from across the political spectrum in both attempts.

She questioned whether Mr Farley was what the electorate needed but cut herself off, saying: “We are where we are.”

After thanking her closest supporters, Ms Milthorpe implored voters across the country to not “let this energy dissipate”.

“Keep having conversations with friends, family and colleagues,” she said.

“Keep hoping for a better future for our beautiful children, and keep fighting, and I will fight right alongside of you.”

‘Voters never get it wrong’: Ley breaks silence

Farrer’s former longtime MP Sussan Ley urged the party she used to lead to “accept this result with humility”.

Ms Ley held the seat for 25 years and quit after being rolled as Liberal Party leader earlier this year.

She hastily left federal politics after her ousting and has kept out of the public eye, despite pumping $250,000 into the Liberal candidate’s campaign.

Former Farrer longtime Farrer MP Sussan Ley has urged the Liberal Party to ‘accept this result with humility’. Picture: NewsWire / Martin Ollman

“The seat of Farrer was created in 1949. Until tonight, at every one of the 30 elections since, through different and challenging circumstances, it has been held without exception by the Liberal and National parties,” Ms Ley said in a statement.

“It would be an error to reduce both the scale and significance of tonight’s defeat to a Coalition split which occurred months ago, or to misattribute it to the date the vote was held.

“I urge the Liberal leadership to accept this result with humility because the voters never get it wrong.

“On the day the leadership spilled in February, the new leader said the Liberal Party needed to ‘change or die’.

“Three months later, the result in Farrer demonstrates that statement to be far truer today than it ever was then.”

‘This is tough’

Speaking to media a short time later, Ms Ley’s leadership successor Angus Taylor said: “This is tough.”

The Opposition Leader the Coalition knew the by-election “was going to be tough” and that it was not the vote “we wanted”.

“You can breach trust in an instant but it takes real time to rebuild it,” Mr Taylor told Sky News, clarifying that he was referring to the Coalition splits under Ms Ley.

He said the Coalition had focused too much on the “politics of convenience” rather than “conviction”.

Opposition Leader Angus Taylor has refused to say One Nation poses a threat to the Coalition. Picture: NewsWire / Simon Dallinger

“And we’ve got to get that trust back,” he said.

“And that means … being honest with the Australian people that mass migration has not worked for this country.

“Being honest that the net zero ideology is driving up energy bills and sending industry offshore.

“Being honest that big government and too much spending is driving up inflation and interest rates and making Australian poorer.”

Mr Taylor also refused to say that One Nation posed a threat to the Coalition.

‘Catastrophic for Angus Taylor’: Labor reacts

Labor responded to Saturday’s result by declaring it “catastrophic” for Mr Taylor’s leadership.

Cabinet minister Murray Watt, one of Anthony Albanese’s closest political operatives, said the outcome “puts beyond doubt that the Liberals and Nationals can only form government in coalition with One Nation”.

“After knifing their first ever female leader in Sussan Ley, voters in her old seat have sent a clear message to Angus Taylor that under him, the Liberals are no better,” Senator Watt said in a statement.

“The Liberal Party has held Farrer for around 60 of the 86 years that the seat has existed. Tonight they look like finishing a distant third, or even fourth.

“Even worse, by directing preferences to One Nation, they have delivered this extreme, chaotic party its first ever win for a lower house seat.”

But Mr Joyce earlier warned the Albanese government that One Nation was setting its eyes on Labor seats in Western Sydney.

One Nation MP Barnaby Joyce says his party is gunning for Labor seats in Western Sydney. Picture: NewsWire / Simon Dallinger

Labor has dominated Sydney’s multicultural working class western suburbs for decades.

Asked post-election call what his message for the Prime Minister was, Mr Joyce said: “Western Sydney, here we come. Believe you me.”

He said he had come across One Nation supporters backgrounds while campaigning in Farrer.

“We’re coming to Western Sydney,” Mr Joyce said.

“I look forward to meeting you there, Chris Bowen. I’ll be on the stage. Come talk to me.”