Labor candidate Brian Mitchell won the seat of Lyons after receiving a 3.5 per cent swing in election votes. 

A lengthy counting process held back Mr Hutchinson from declaring a loss when it was first expected over a week ago. 

In a statement issued on Facebook on Monday, Mr Hutchinson declared his loss. 

"I have witnessed a true sense of community, I have enjoyed meeting so many people and seeing so much commitment to improving lives around,” Mr Hutchinson wrote.  

“It has been a privilege to be the member for Lyons, and I hope Lyons is well served by the incoming member.” 

Mr Hutchinson told ABC radio on Monday that he feared the impact of electorates led by Labor or independents.

"It'll be more difficult for the state of Tasmania to have influence in the Federal Parliament, given, as I say, all the lower house members are independents or members of the Opposition," he said.

"One of the great advantages, I suppose, of being in opposition is you can, and you have, influence."

Incoming Lyons MP Brian Mitchell said support for Labor’s election promises should be honored by the Coalition government, but he understood new Labor candidates faced a challenge. 

He welcomed Mr Hutchinson’s concession and thanked him for his service. 

“Tasmanians voted overwhelmingly for the Labor agenda which sends a strong message to the Coalition that the community cares a lot about taxation changes and health funding,” Mr Mitchell said. 

“I thank Mr Hutchinson for his three years of service.” 

Mr Hutchinson is one of three Tasmanian Liberal MP’s, dubbed the Three Amigos, who lost their seats to the opposition in the election. 

Mr Mitchell said he would move in to Mr Hutchinson’s office after the official declaration of election poll results.