Senior Liberal George Brandis concedes a hung parliament is a "live possibility".
There were only two possible results in Saturday's election - a coalition government or a hung parliament - he said.
It is more likely than not that seats remaining too close to call will in the end fall toward the coalition.
But "nobody is predicting the likelihood of a majority Labor government".
Labor frontbencher Richard Marles insists a hung parliament is a "very live option".
Tony Abbott's former chief of staff Peta Credlin says the coalition is suffering in Tasmania, Queensland and the Northern Territory - places where the former prime minister made a lot of gains at the 2013 election.
"Both times we've taken out prime ministers we've got back into hung parliament territory," she told Sky News.
"The Australian people want to see stability in their leadership - they want to see that the people they voted in at one election can at least get through the next term."
