Newcastle has long been a political stronghold for the center-left Labor Party, with the city's working-class history aligning with Labor’s values. Since Australia’s Federation, Labor has consistently won all federal and state seats that overlap with the city. This dominance has persisted across all levels of politics, with the party holding firm in the region.

However, the political landscape of Greater Newcastle is not entirely one-sided. The Port Stephens region in the northern part of the metropolitan area has historically been competitive for the center-right Liberal Party. In addition, some of Newcastle's more affluent, beachside suburbs, such as Bar Beach and Merewether, have seen the Liberal Party gain ground, although these areas remain relatively marginal for them. Port Stephens, in particular, has been a fluctuating seat, once firmly Labor and now often contested by the Liberals.

A key turning point for Newcastle’s politics occurred during the 2011 state election when the Liberal-National Coalition achieved a landslide victory over the incumbent Labor government, led by Premier Kristina Keneally. This defeat marked the worst in New South Wales history and one of the most significant losses for a sitting government in Australia since World War II. The loss was particularly painful for Labor, with the party only holding two seats in the Hunter Region: Cessnock and Wallsend. Before this election, the Liberals had a limited presence in the region, but they managed to secure Port Stephens in 2007. Despite the 2011 success, the Coalition lost all its Hunter Region seats in the subsequent 2015 state election and did not regain any in 2019, when Labor formed a minority government.

At the federal level, three electoral divisions fall mostly or entirely within Greater Newcastle: Newcastle, Paterson, and Shortland. The Newcastle seat, representing inner-city suburbs, has been a Labor stronghold since its creation in 1901. The Paterson seat, covering the Port Stephens area and extending to Maitland and Kurri Kurri, has been a marginal Labor seat, previously won by the Liberals, and historically covered more rural areas. The Shortland seat, encompassing the eastern suburbs of Lake Macquarie and parts of the Central Coast, remains a fairly safe Labor seat.

On the state level, Greater Newcastle is home to five electoral districts, four of which are firmly held by Labor: Charlestown, Newcastle, Port Stephens, and Swansea. The remaining district, Lake Macquarie, is held by an independent candidate, adding a layer of complexity to the region’s political structure.

Greater Newcastle comprises five local government areas: the City of Newcastle, Lake Macquarie, Cessnock, Maitland, and Port Stephens. Each of these areas has distinct political characteristics, contributing to the region's dynamic and occasionally shifting political landscape. While Labor remains dominant, the Liberal Party continues to challenge in select areas, particularly in the northern suburbs and coastal regions. This blend of political affiliations reflects the changing priorities and demographics of the Greater Newcastle area.