Anthony Albanese has declared victory, while Peter Dutton has conceded his own seat in a landslide loss.
Labor is on track for a thumping election victory, with Peter Dutton set to lose his own seat.
Labor has won government after recording strong swings across the country and will pick up a swathe of Liberal seats including Peter Dutton's own seat of Dickson.
Dutton conceded defeat and congratulated Albanese, who has declared victory "with a deep sense of humility and a profound sense of responsibility".
The Liberal Party will need to find a new leader, while Labor will govern with a thumping majority.
Labor will form a majority government after recording strong swings in New South Wales, Queensland, Tasmania and South Australia and a small swing in Victoria, while Peter Dutton has conceded his own seat of Dickson.
The ABC has called 86 seats for Labor, but it is leading in several more, and ABC election analyst Antony Green has said it could end the count with a "thumping" majority.
It will make Anthony Albanese the first prime minister elected twice since John Howard.
An emotional Anthony Albanese took to the stage at Labor's election night function in Sydney to thank voters.
"Serving as your prime minister is the greatest honour of my life," Mr Albanese said in his victory speech in Sydney.
"And it is with a deep sense of humility and a profound sense of responsibility that the first thing that I do tonight is to say thank you to the people of Australia for the chance to continue to serve the best nation on earth.".
The PM said he had spoken to Peter Dutton and thanked him for "his generous words at the end of what has been a very hard-fought campaign...
Repaying your trust will drive our government each and every day of the next three years...
"We take out this task with new hope, new confidence and new determination.
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