Felix Ellis is leading the recount for the Braddon seat left vacant by Adam Brooks.
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The counting of 18,000 ballot papers started at 12pm on Wednesday with 11 candidates taking part.
Mr Ellis has 3800 votes to account for a 32.8 per cent share following the distribution of all ballot papers, while fellow Liberal candidate Stacey Sheean is in second place with a tally of 3057.
The Tasmanian Electoral Commission said because no candidate had received a majority of the votes the process of excluding the candidate with the fewest votes would start.
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Liberal Lara Hendriks is in third place with 2823 votes while independent Craig Garland has 673 votes.
Mr Ellis was elected by recount in 2020 following the resignation of Joan Rylah.
Mr Ellis looked likely to be elected ahead of Mr Brooks in the early stages of counting from May 1. He had 27 more first preference votes than Mr Brooks with 6229.
However, Mr Brooks had the upper hand following the distribution of preferences finishing on 10,859 votes, 312 ahead of Mr Ellis.
Mr Brooks informed Premier Peter Gutwein he would not be taking his seat in parliament the day before the declaration of the polls as he was in Queensland seeking treatment for mental ill-health.
Since his resignation Mr Brooks has appeared in court in Redcliffe, north of Brisbane, on weapons and identity fraud charges.
The first sitting of the newly elected Tasmanian Parliament will be on June 22.
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