ACT Chief Minister Andrew Barr will contest the next territory election after previously suggesting a Coalition win at Saturday's election would hurt his longevity in the role.
Saturday's surprise federal election results indicate a win to the Coalition, which is a "setback" to an early expansion of the light rail, according to Mr Barr.
"We certainly can't afford two conservative governments in this city. There must be a progressive alternative," he said.
"I will continue as Chief Minister and ACT Labor leader and contest the next territory election."
The chief minister suggested in December the longevity of his role hinged on "being able to get things done", which would be made difficult by a Coalition government.
Mr Barr said planning and assessment for the second stage of the light rail would continue with the relevant federal agencies.
"The election result is a setback for the early expansion of light rail," Mr Barr said.
"We will look at our parliamentary approval options once the final result of the election is known."
While Mr Barr congratulated Prime Minister Scott Morrison on his election win, he said he would continue to advocate for Canberra's values of "inclusiveness, fairness and equality".
"It is also clear that we must continue to do the heavy lifting to support our growing city," Mr Barr said.
Mr Barr said, despite the loss, he had "taken heart" from the capital recording the strongest Labor vote and therefore the "strongest progressive vote in the country".
Canberra Liberal leader Alistair Coe said Saturday's result was a "win for Canberra and Canberrans".
"All Canberrans will tend to gain from the Coalition's tax and economic policy," Mr Coe said.
Mr Coe waved off how the Coalition's proposed $1.5 billion cut to the public service would hurt Canberrans, calling it "an efficiency dividend" that would be "right across the country".
"Canberra has always done well under a Coalition government," Mr Coe said.
He said the lack of federal Labor's "political commitment" to stage two of the light rail would mean the ACT government would have to present a "sound economic and financial case" for Commonwealth investment.
Mr Coe said Saturday's result gave his party confidence at next year's territory election.
"But there's a huge amount of work to do," he said.