Australia's Labor leader Anthony Albanese will be sworn in tomorrow as the new prime minister after incumbent Prime Minister Scott Morrison conceded defeat after yesterday's election.

The Labor Party is set to end almost a decade of conservative rule as the government was swept away in the election by a wave of support for candidates who campaigned for more action on climate change and may hold the balance of power.

Partial results showed that while Labor had made small gains, Prime Minister Scott Morrison's Liberal-National coalition had been punished by voters in Western Australia and affluent urban seats in particular.

The Greens and a group of so-called "teal independents", who campaigned on policies of gender equality and tackling climate change, put on a strong showing, tapping voter anger over inaction on the environment after some of the worst floods and fires to hit Australia.

"Tonight, I have spoken to the leader of the opposition and the incoming prime minister, Anthony Albanese. And I've congratulated him on his election victory this evening," Morrison said.

In his victory speech, Albanese said the two principles of a government led by him will be "no one left behind" and "no one held back".

"I want to bring Australians together, I want to seek our common purpose and promote unity and optimism not fear and division."

Albanese said it is important to work together to shape change.

"Together we can end the climate wars. Together we can take advantage of the opportunity for Australia to be a renewable energy superpower. Together we can work in common interests with business and unions to drive productivity, lift wages and profits."

Albanese said he wanted an economy that worked for people and not the other way around.

He went on to talk about strengthening university healthcare through Medicare, protecting universal superannuation and making equal opportunity for women a national priority.

Albanese said he aimed to be sworn in swiftly so he could attend a meeting of the Quad security grouping in Tokyo on Tuesday. He promised constitutional recognition and parliamentary representation for Indigenous Aboriginals, as well as the establishment of an anti-corruption commission.

Minority government possible

In results so far, Labor had yet to reach the 76 of the 151 lower house seats required to form a government alone. Final results could take time as counting of a record number of postal votes is completed.

With 60 percent of the vote counted, Labor had 72 seats and Morrison's coalition 55. Independents and the Greens held 11, the Australian Broadcasting Corp projected. A further 13 seats remained in doubt.

The centre-left Labor had held a decent lead in opinion polls before the election, although surveys showed the Liberal-National government narrowing the gap in the final stretch of a six-week campaign.

Turning teal

In one of the biggest hits to the government, Treasurer Josh Frydenberg said it would be "difficult" for him to hold the long-held Liberal seat of Kooyong in Melbourne against an independent newcomer.

Three volunteers working for teal independent Monique Ryan, who was challenging Frydenberg, said they joined Ryan's campaign because they were concerned about the climate for the sake of their children and grandchildren.

"For me, it's like this election actually feels hopeful," Charlotte Forwood, with three adult children, told Reuters.

With Morrison stepping down as party leader and Frydenberg likely to lose his seat, Defence Minister Peter Dutton - a former policeman from Queensland - was shaping up as favourite to lead the Liberals.

Early returns suggested the Greens had made ground, looking to pick up to three seats in Queensland.

Greens leader Adam Bandt, who retained his inner city Melbourne seat, said climate was a major issue for voters.

"There was an attempt from Labor and Liberal to bury it, and we were very clear about the need to tackle climate by tackling coal and gas."

Morrison and Albanese earlier cast their votes in Sydney after making whistle-stop tours across marginal seats in the final two days of a campaign dominated by rising living costs, climate change and integrity.

As Labor focused on spiking inflation and sluggish wage growth, Morrison, a strong supporter of Australia's coal industry, made the country's lowest unemployment in almost half a century the centrepiece of his campaign's final hours.

UK Prime Minister Boris Johnson offered Albanese his congratulations.

"Our countries have a long history and a bright future together. As thriving, like-minded democracies we work every day to make the world a better, safer, greener and more prosperous place."

- Reuters / ABC