Morrison became Australia's sixth prime minister in 10 years in August after his predecessor Malcolm Turnbull fell victim to infighting among the Liberals, and the suspense over the count in the by-election for Sydney's Wentworth constituency were in keeping with the unpredictable politics of recent times.
The upset has cost Prime Minister Scott Morrison his single-seat majority in Parliament.
Sharma did well among voters who voted early, suggesting at least some support was pushed to Phelps by the Morrison government's performance over the past fortnight - in which Coalition senators voted in favour of Pauline Hanson's "it's OK to be white" motion, and the government had to scramble to clarify its position on discrimination against gay schoolchildren. "We have absolutely no intention of those kind of Labor Party parlour games".
The result of the much-anticipated by-election means the Morrison government no longer holds majority, meaning there is now a hung parliament.
It is understood that Mr Sharma is not interested in a Senate seat, and the only one available to him would be the spot promised to Andrew Bragg, who pulled out of the preselection race because he felt a female candidate was the Liberal's best hope in Wentworth.
Morrison conceded the by-election showed voters were furious about Turnbull being ousted.
But by Sunday evening, his candidate trailed an independent rival by 1,600 votes with several thousand votes still to be counted, the Australian Electoral Commission (AEC) said.
"I don't see there is any middle ground there, given the arguments that both he and his treasurer put about instability in the economy". "If it (the margin) gets as close as 100 then an automatic recount is triggered under the normal rules", Morrison told reporters. The next day Mr Turnbull stood aside and Mr Morrison won the leadership ballot against Home Affairs Minister Peter Dutton.
Throughout what she describes as her "pop-up campaign", Dr Phelps was vocal on a range of trending topics, including religious freedom, refugee and asylum seeker policy and climate change.
Rebekha Sharkie said she would not hold the government to ransom.
Labor did not capitalise on the Liberal Party vote collapse: one hour after polls closed, the Greens' Dominic Wy Kanak was besting the opposition party's Tim Murray on the primary vote. I think she'll have an impact there, in that chamber where personalities really do matter. In fact, they were created to demonstrate that the Morrison government is unequivocally committed to every US-led war and military provocation, including its backing for Israel's persecution of the Palestinians and its moves towards a regime-change against Iran.
"We've already had some very constructive discussions with the cross-benchers and a number of them have made it very clear that they want the government to run its full term", Frydenberg told Sky News.
Before the Wentworth upset, Morrison had indications of support from the Victorian independent Cathy McGowan and the Queensland crossbencher Bob Katter.
But if the result in Wentworth is anything to go by, the country may not be listening.