'I always believed in miracles': Scott Morrison celebrates as Bill Shorten concedes defeat

Prime Minister Scott Morrison has hailed the Coalition's "miracle" return to government and says it represents a great victory for the "quiet Australians".

Flanked by his wife Jenny and two daughters, a jubilant Mr Morrison told Liberal supporters at an event in Sydney that "I have always believed in miracles".

'How good is Australia!' Scott Morrison claims victory.Credit: James Brickwood

"I am standing with the three biggest miracles of my life here tonight and tonight we have been delivered another one," he said to deafening cheers.

"How good is Australia? And how good are Australians?"

Mr Morrison applauded Australians "who have worked hard every day".

"They have their dreams, they have their aspirations: to get a job, to get an apprenticeship, to start a business, to meet someone amazing,' he said, turning to his wife.

"To start a family, to buy a home, to work hard and provide the best you can for your kids. These are the quiet Australians who have won a great victory tonight."

Mr Morrison said the victory was not about him or the Liberal Party, but about "every single Australians who depends on their government to put them first".

He said a returned Coalition government would immediately return to work.

"That is my undertaking to Australia from one end of the country to another. I said I was going to burn for you and I am, every single day."

Bill Shorten, on stage with wife Chloe, conceding defeat.Credit: AAP

Opposition Leader Bill Shorten had earlier conceded defeat to Prime Minister Scott Morrison and says he will not contest the Labor leadership.

Speaking to supporters in Melbourne with wife Chloe by his side, Mr Shorten said he knew the Labor faithful were hurting "and I am too".

"Without wanting to hold out any false hope while there are millions of votes to count and important seats being finalised, it is obvious that Labor will not be able to form the next government," he said.

"So in the national interest a short while ago, I called Scott Morrison to congratulate him.

"I wished [his wife] Jenny and their daughters all the very best and above all I wished Scott Morrison good courage and good fortune in the service of our great nation."

Mr Shorten said the campaign had been tough, and at times toxic, but the wishes of the Australian people should be respected.

The party would continue the fight, however "that task will be for the next leader of the Labor Party".

"I will not be a candidate in the next leadership ballot," he said. Mr Shorten will continue as member for his Melbourne seat of Maribyrnong.

Labor supporters at the election night function for Opposition Leader Bill Shorten in Melbourne.Credit: Eddie Jim

Mr Shorten said along with his family and the trade union movement, the Labor Party was "my life" and serving as its leader for more than five years was a great honour.

He said his party worked hard, advanced ideas and "were upfront and clear" about its planned reforms, including climate action.

"We've said loud and clear that australia needs ... to take real action on climate change," he said.

"Parts of our nation remain deeply divided. For the sake of the next generation Australia must find a way forward on climate change."

He pointed to Coalition preference deals with One Nation and Clive Palmer's United Australia Party that hurt Labor in NSW and Queensland.

ABC election analyst Antony Green had earlier called the election for the Coalition, saying Labor couldn't win a lower house majority on current counting.

Counting on Saturday night showed the Coalition was polling far more strongly than opinion polls suggested, on the back of a surprise swing in Queensland and a poor result for Labor in that state.

Depending on results in Western Australia and pre-poll votes, it appeared the Coalition would regain office - albeit potentially in a minority government.

Earlier, Labor frontbencher Penny Wong had said Western Australia may clinch the election for her party following a collapse of its vote in Queensland.

Penny Wong believes Western Australia could deliver Labor a victory.Credit: Dominic Lorrimer

Senator Wong said Queensland had been "tough ... for a fair while" for federal Labor. But on a visit to Western Australia last week, voters expressed a wish that "'we don't want [the election result] to be over before it gets to us.' That's probably the case".

The national result so far is markedly different from that predicted by successive opinion polls, and is sure to trigger debate about whether the polls can be trusted.

At about 9pm, the Coalition's nationwide primary vote sat at 41.7 per cent, Labor was on 33.3 per cent and the Greens had secured 10.8 per cent. It appeared the Coalition had won 74 lower house seats, Labor was on 66 and six were set to go to the Greens and independents.

Seventy-six seats are needed to win an upper house majority. If the Coalition falls short, it will be forced to negotiate a minority government with crossbench MPs - many of them staunch advocates for climate action.

Earlier in the day, nationwide exit polls suggested Labor was on track for election victory, a result made more likely after Tony Abbott was ousted from the seat of Warringah, however in a surprise result for the Coalition, Peter Dutton appears set to retain the Queensland seat of Dickson.

Support for the Home Affairs Minister comes despite a vigorous campaign by grassroots group GetUp to have him ousted.

At 10pm Mr Dutton led Labor candidate Ali France 53-47 on a two party-preferred basis in the north Brisbane electorate.

Home Affairs Minister Peter Dutton has polled strongly.Credit: AAP

Former prime minister Tony Abbott lost his blue-ribbon Sydney seat of Warringah in a thumping defeat by independent candidate Zali Steggall. At 10pm the Australian Electoral Commission projected that Ms Steggall would win 59-41 on a two-party preferred basis.

Ahead of the election, the Coalition notionally had 73 seats and Labor had 72, while independents held the other six.

An Ipsos poll published on Friday suggested the Morrison government trailed the Opposition 49 to 51 per cent on a two-party basis up from 48-52 two weeks ago. The Coalition's primary vote was up three points to 39 per cent while Labor's remained stable at 33 per cent.

Labor leader Bill Shorten's personal approval ratings improved over the last two weeks of the campaign, however the Ipsos poll showed he still lagged behind Prime Minister Scott Morrison as preferred leader.

Betting odds tightened in the closing days of the election campaign, but bookmakers still backed a Labor win.

A record 4.76 million people cast an early pre-poll vote at this election, including around 700,000 votes cast on Friday alone. The Australian Electoral Commission this week warned the high number of early votes meant counting may be delayed and a clear winner may not be known on Saturday night.

The tight showdown and high number of marginal seats means preference flows will likely be critical to the result. The Liberal Party will exchange preferences with Clive Palmer's United Australia Party and the Nationals have struck preference deals with Pauline Hanson's One Nation.

Labor has not entered into formal preference deals, but a vast proportion of Greens votes flow to Labor as preferences.