Peter Dutton, leader of the conservative Liberal party, conceded defeat and the loss of his own seat – echoing the fate of Canada's conservatives and their leader whose election losses days earlier were also attributed to a Trump backlash.

Supporters at Labor’s election party in Sydney cheered and hugged each other as Albanese claimed victory and said his party would form a majority government.

"Our government will choose the Australian way, because we are proud of who we are and all that we have built together in this country," Albanese told supporters.

"We do not need to beg or borrow or copy from anywhere else. We do not seek our inspiration from overseas. We find it right here in our values and in our people."

Albanese is the first Australian prime minister to win consecutive terms in two decades. He said Australians had voted for fairness and "the strength to show courage in adversity and kindness to those in need".

The Australian Electoral Commission website projected Labor would win 80 of 150 seats in the House of Representatives, increasing its majority, with 90 percent of polling places counted.

The Australian Broadcasting Corporation (ABC) projected 85 seats for Labor, 41 for the Liberal and National coalition, with nine for independents and another 15 too close to call.

Dutton – whose Liberals had been leading in opinion polls as recently as February until he became dogged with comparisons to Trump – said he had phoned Albanese to congratulate him.

"We didn't do well enough during this campaign. That much is obvious tonight, and I accept full responsibility for that," Dutton said in a televised speech.

Dutton, a former policeman with a reputation for being tough on crime and immigration, said he had spoken to Labor's candidate in the seat of Dickson he had held for two decades, and congratulated her on her success.

"We have been defined by our opponents in this election which is not the true story of who we are," Dutton said, promising the party would rebuild.

‘The Trump factor’

Cost-of-living pressures and concerns about Trump's volatile trade and other policies had been among the top issues on voters' minds, opinion polls showed.

"If you sling enough mud it will stick," said Jacinta Nampijinpa Price, the Liberal senator for Northern Territory, whose comments that her party would "make Australia great again" had fueled comparisons to Trump's own "Make America Great Again" slogan.

"You made it all about Trump," she said on ABC. Dutton had said he would appoint Price to a ministry of government efficiency, one of several echoes of Trump's policies.

"Losing Peter Dutton is a huge loss," she added.

Read also: Australians vote in election swayed by inflation, Trump

Several political analysts were critical of the Liberals campaign, saying not enough policy work had been done, and that Dutton had made mistakes including a short-lived policy to ban public servants working from home.

The Liberal Party spokesman, Senator James Paterson, defended the conservative campaign, saying it was negatively affected by "the Trump factor".

"It was devastating in Canada for the conservatives [...] I think it has been a factor here; just how big a factor will be determined in a few hours' time," he earlier told ABC.

US Secretary of State Marco Rubio issued a statement congratulating Albanese, saying Australia was "a valued ally, partner and friend of the United States".

"Our shared values and democratic traditions provide the bedrock for an enduring alliance and for the deep ties between our peoples," Rubio said.

British Prime Minister Keir Starmer also congratulated Albanese and said the two countries' defense collaboration, including AUKUS, and support for Ukraine, would grow.

"The UK and Australia are as close as ever – which goes to show that long-distance friendships can be the strongest," Starmer wrote on social media platform X.

Indian Prime Minister Narendra Modi told Albanese in a message on X: "This emphatic mandate indicates the enduring faith of the Australian people in your leadership."

Earlier, as counting got under way, Labor Treasurer Jim Chalmers said the government had been "in all sorts of trouble" at the end of 2024 but got back into the contest because of Albanese's strong campaign performance, policies that addressed concerns about the cost of living, and the Trump effect.

As the results started emerging, he told ABC the projected victory was "a win for the ages". Albanese "has pulled off one of the great political victories since federation,” he said.

The results were "absolutely unbelievable", Labor supporter Melinda Adderley, 54, said through tears at the election party.