Prime minister Malcolm Turnbull claims victory.
"Well we've won the election .. that's what we've done. We've won the election."
The prime minister has thanked his family and the families of all candidates for their support.
Australian Prime Minister Malcolm Turnbull during a press conference at Commonwealth Parliamentary Offices, After a tight election result(AAP Image/Paul Miller) Source: AAP image/Paul Miller
"Above all I want to thank the Australian people. Earlier today, Bill Shorten called me and congratulated me on being re-elected as prime minister and I thank Bill for that call. He congratulated me and Lucy and I thanked him and Chloe for making that call and I have to say on a family note, when Bill called me I had our little granddaughter Isla on my left hip, so she was a one year old witness to history."
Labor leader Bill Shorten congratulated Mr Turnbull .. saying it's clear the coalition will form government.
Mr Shorten says he hopes for the nation's sake the government does a good job.
He's pledged to work with the coalition where possible.
"They've (Australians) made it clear with the representatives selected that they expect us to work together. I've pledged and I've indicated to Mr Turnbull that where there is common ground, we will work very hard to accomplish it. I understand that we have an opportunity here. The Australian people expect all sides of politics to work in the national interest - in the interests of the people, not just themselves. So I understand that we need to make this parliament function and we will be up for that."
Mr Turnbull says he also hopes to find common ground.
"Mr Shorten said earlier today that he looked forward to seeking to reach common ground and I welcome that remark. I welcome it. Because it is vital that this parliament works. It is vital that we work together and as far as we can find ways upon which we can all agree, consistent with our policies that we've taken to the election, consistent with our political principles that meet the great challenges Australia faces."
The prime minister says there are a number of key issues the government needs to balance.
"We need to ensure that Medicare and education - our health services and all those vital government services are provided for and Australians feel secure that they are provided for and guaranteed and at the same time we have to ensure that we have to bring our budget back into balance."
However, Bill Shorten says he'll stand firm on Labor's core values.
He says Labor has a mandate to stand up for Medicare and to make sure schools are properly funded.
Mr Turnbull says the caretaker period is over, and he expects his ministry to be sworn in next week.
He says there's no cause for a major shake-up.
"I've obviously given consideration to the ministry - both before and after the election and as you know I've said the ministry I lead - I led to the election will be the ministry I lead after the election. Regretably several ministers have not been returned and so there will some some changes. But you shouldn't anticipate large scale changes. The Ministry was assembled relatively recently following the retirement of Warren Truss."
A senior Liberal says Prime Minister Malcolm Turnbull will focus on fresh faces and women when the post-election ministry is announced.
Cabinet Secretary Arthur Sinodinos expects the new ministry will straddle the liberal and conservative elements in his party.
He's told the A-B-C .. the focus will be on rising stars and younger women, but the final call sits with the P-M.
"I'm not going to speculate on what the PM will do. But it is quite a talented group at various levels, middle age, younger ages and the like. So there's a pretty good, I think, stream of people to come through. We also have to make sure we continue to develop our younger women and bring them through because it's important to have that group of women who can come through and into cabinet so ultimately cabinet is also more representative of the greater diversity of the community. "
Meanwhile, Malcolm Turnbull and Bill Shorten say they are keen to consider the possibility of bringing in electronic voting, so the country doesn't drift for days after an election without knowing the winner.
The Labor leader says he'll contact the P-M to suggest laying the groundwork for new laws allowing electronic voting.
The Coalition is on track to win at least 74 seats, and is confident it can win two more, giving it enough seats to govern in its own right.
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