LNP candidate Cameron Caldwell claimed victory in the seat, which had been held by retiring Coalition MP Stuart Robert, one of the former ministers caught up in the Robodebt scandal.
The LNP secured a swing of more than 2 per cent against Labor’s Letitia Del Fabbro to comfortably retain the seat, making up most of the ground Robert lost at the previous federal election.
Dutton said Caldwell would be a “great member” who had “worked tirelessly” for Fadden.
The Liberal leader also sought to tie the by-election result to broader discontent with the Albanese government.
“People are hurting at the moment and Labor’s economic experiment is failing Australians,” he said.
Caldwell also connected the local sentiment with the federal mood.
“We have a great leader and we will return to government.”
Labor, meanwhile, sought to downplay the result.
Deputy Prime Minister Richard Marles described the swing to the Coalition as “lethargic”.
“To have a by-election against a sitting government where you only get a 2 per cent swing in an area which is in your heartland, is a very, very lethargic result,” he said.
But Treasurer Jim Chalmers acknowledged the result showed federal Labor’s struggles in the Sunshine State.
”Obviously, we need to do much better in Queensland than we have for the last decade or so,” he said.