The surprise Caucus meeting has been called under rules put in place by former leader Kevin Rudd, which automatically throw open the party's leadership if Labor loses an election.
The meeting appears to be an admission Labor accepts it cannot win government, even though a result on the final seat numbers is unlikely until at least Friday afternoon.
The Coalition is edging closer to a slim majority in parliament as counting from the federal election continues in key seats.
That means Prime Minister Malcolm Turnbull is likely to hang onto power, with the counting of postal ballots favouring the Coalition.
Despite that, Mr Turnbull is continuing to lay the groundwork for a minority government in case the numbers do not fall in the Coalition's favour.
The Prime Minister has met independent senator Nick Xenophon yesterday, and he's holding talks with Independent Bob Katter among others.
Mr Turnbull says it is just a precaution.
"I am confident that we'll be able to form a majority government, but, in any event, I'm talking to the cross-benchers, obviously, and will continue to do so. But so far, the counting trends are very positive, from our point of view. "
However, it appears the Greens are not in the equation.
Deputy Greens leader Adam Bandt says he is not surprised, saying his party would not support a conservative government.
"We made it clear before the election that we wouldn't be supporting a conservative government. They have been absolute disasters on climate change and on so many of the things that matter to us. And I took that to the people of Melbourne, and we got an increased vote in Melbourne. So, I'm not surprised that the Prime Minister hasn't called me, but I do think it's a real opportunity for all of us on the crossbench to make some significant gains."
However, forming a minority government seems to be a moot point.
In an apparent admission of defeat, Labor's Caucus will meet in Canberra tomorrow (fri) to possibly decide who will be the next opposition leader.
Under rules adopted by the caucus three years ago, the leadership is automatically spilled after an election if Labor loses.
Labor frontbencher Ed Husic has denied the meeting is being rushed, even though no final election result is expected to be known until tomorrow afternoon at the earliest.
Mr Husic has told Sky News he would not put much emphasis on the meeting, saying there is no doubt Bill Shorten will continue to be leader and the meeting is to be expected.
"(It) is not a special caucus meeting, per se, that it's had to be called out of the blue. This is what we do after an election. And he's bringing together people who are very excited by the prospect of being able to influence the way in which the nation is run into the next term of parliament."
(Reporter:) "Before the seats are finalised? It looks like it's rushed."
"Kieran, that happened last time. We did the same thing last time. There were still some seats that were being decided, still some Senate places that were being decided, and we brought people together. It's something that we do as a ... it's, you know, par for the course."
Bill Shorten says, even if the Coalition wins government, it will be unable to govern effectively.
"Mr Turnbull will say and do anything to keep in power. If he scrapes home with a one-seat majority, let's see how he goes governing. The problem is he has a mandate for absolutely nothing. Australians don't support his budget and his cuts to health care. Australians don't support his corporate tax cuts. And, indeed, it would appear that quite a lot of the Liberal Party don't even support their leader."
