Turnbull claims victory in Australian election

Australian Prime Minister Malcolm Turnbull has formally claimed victory after the July 2 federal election.

Earlier today, Opposition Leader Bill Shorten phoned Turnbull to concede defeat and congratulate him.

The Prime Minister said he took the call with his granddaughter Isla on his lap, and thanked his family and the families of all candidates in the election for their support.

"We have resolved this election," he told reporters in Sydney.

Turnbull acknowledged the MPs who had lost their seats, saying it was a tough time, and welcomed new MPs.

He noted that Shorten hoped to reach common ground with the Government. "I welcome that remark ... because it is vital that this parliament works," he said.

Earlier, Shorten told reporters in Melbourne: "I hope for our nation's sake the coalition does a good job; I hope they run a good government".

He added: "Whilst counting has not concluded in a number of very close seats, it is clear that Mr Turnbull and his Coalition will form a government."

After one week of counting, the Coalition has 74 seats in the 150-seat House of Representatives and Labor 66 seats with five seats still too close to call. But the Coalition is now expected to get 77 seats and form a majority government.

Shorten thanked Australians who voted Labor, some for the first time.

"I want to reassure them, that despite Labor not winning enough seats this time, that the Labor party will stick true to its core values, its and promises and beliefs," he said.

- AAP