Labor has re-endorsed Bill Shorten as leader in preparation for what the opposition expects will be an early election.
Mr Shorten brought the Labor caucus together in Canberra on Friday for a pep rally and discussion about the leadership, as vote counting continued a week after the federal poll.
The caucus passed a motion, moved by former leadership contender Anthony Albanese, expressing confidence in Mr Shorten.
It also authorised the leadership team to "negotiate with crossbench members to advance Labor's agenda in the 45th parliament".
It applauded Mr Shorten and the Labor team for holding the coalition to account "for their extreme right wing agenda" while also advancing Labor's positive agenda.
A jubilant Mr Shorten welcomed newly elected Labor MPs to the caucus, declaring the coalition would scrape over the line to form government but wouldn't last long.
"After the longest campaign in 50 years, this could well be one of the shortest parliaments in 50 years," he told the gathered Labor MPs in Parliament House.
Mr Shorten said it was likely in coming days the coalition would gain the numbers to form government.
Labor looks like holding 69 seats, a substantial improvement on the 2013 election rout which left Labor with 55 seats.
The coalition appears set to retain government with 77 seats in the 150-seat parliament.
"The combination of a prime minister with no authority, a government with no direction and a Liberal party at war with itself will see Australians back at the polls within the year," Mr Shorten said.
Mr Shorten took aim at minor parties which played on the fears of Australians grappling with the uncertainty of a transforming economy, where old norms and institutions seem less permanent than they once did.
Many felt left out and alienated from a political process which did not speak to their issues.
"In such a climate, it's easy for the extremists, for the people with the simple solutions to emerge and thrive, to foster division, to blame minorities, to demonise difference, to appeal to the dark angels of our national character," he said.
"Let me make something very clear from the outset of the 45th parliament - I will never respect or tolerate racism or prejudice at any price."
Mr Albanese foreshadowed a review of the Labor leadership rules devised by Kevin Rudd because they do not cover what happens in the case of a hung parliament.
