Malcolm Turnbull has been given the royal nod to form a government as he edges closer towards a parliamentary majority and prepares for a Nationals coalition agreement wishlist.
The prime minister met with Department of Prime Minister and Cabinet secretary Martin Parkinson in Canberra on Monday, a day after Labor leader Bill Shorten conceded defeat in the federal election.
As counting continues, three contests remain close - Hindmarsh, Herbert and Capricornia - with the latter creeping closer towards coalition hands.
The ABC has called Capricornia for the Nationals' Michelle Landry, which would give the coalition the 76 seats it needs for a majority government.
However, a spokesman for Ms Landry told AAP she wasn't prepared to claim victory yet, while 691 votes ahead with 4500 to count.
Labor claimed the West Australian seat of Cowan on Monday, as the Liberal National Party went to an unassailable lead in the Queensland seat of Flynn.
Mr Turnbull wrote to Governor-General Sir Peter Cosgrove on Monday formally advising him of being in a position to form a ministry.
He will have to replace at least two junior frontbenchers, Wyatt Roy and Peter Hendy, who lost their lower house seats, and possibly Tourism Minister Richard Colbeck who could lose his Tasmanian senate seat.
He will also have to renegotiate the coalition agreement with the Nationals.
The Nationals' 22 MPs, led by Deputy Prime Minister Barnaby Joyce, will meet on Tuesday to discuss any changes to the agreement, which is essential to forming government.
Mr Joyce will then meet with the prime minister on Wednesday.
