Independent MP Cathy McGowan defeats Sophie Mirabella in Victorian seat of Indi

Independent Cathy McGowan has retained the tightly contested regional Victorian seat of Indi.

With more than three-quarters of the vote counted, Ms McGowan led Liberal candidate Sophie Mirabella 53 percent to 47 percent.

Ms McGowan addressed a jubilant crowd in Wangaratta tonight, saying she won because her campaign was positive and stuck to its community roots.

"I'd like to thank and honour the work of team orange. Thank you," Ms McGowan told the crowd.

"This election result today has demonstrated that people want a local representative who above all else will put them first. Put them beyond party politics."

Ms Mirabella held the seat as a Liberal MP from 2001 to 2013 before losing to Ms McGowan.

In that election, Ms McGowan won the seat despite trailing significantly on the primary vote, and benefited from preferences from the other nine candidates.

Ms Mirabella’s campaign this year appeared to take a hit when she suggested the Wangaratta Hospital missed out on $10 million in federal funding because she was not elected in 2013.