Albanese set to become next prime minister

The almost 1000 strong crowd at Labor's official election night function in Sydney erupted in cheers as it became clear the party were on track to lead the next government.

While it is not yet known whether Labor would lead in a minority or in its own right, Mr Albanese will become just the fourth leader to take the party to government from opposition since World War II.

The room at Canterbury-Hurlstone RSL exploded in applause and shouts as Scott Morrison conceded the election.

"Do you still believe in miracles?" one supporter heckled, while the crowd chanted "Hey, hey goodbye".

Mr Albanese is shortly expected to address the party faithful to claim the election win.

Labor's success came off the back of large swings to the party in key seats in NSW, Victoria and South Australia.

Labor picked up critical victories in Boothby, Higgins, Reid and Robertson.

But it was key wins in Western Australia that solidified the party's surge, with some in the crowd attributing it to the popularity of state Premier Mark McGowan.

The party also gained large ground in WA, winning the marginal electorates of Swan, Pearce and Hasluck, while also taking safe Liberal seat Tangney.

It wasn't all successful news for the party, with key seats in Queensland on a knife's edge in a contest with the Greens.

Kristina Keneally is also set to lose the former safe seat of Fowler in Sydney's southwest to independent Dai Le.

Ms Keneally attracted criticism after she was parachuted into the electorate at the expense of a local candidate.

After Labor flipped Gilmore at the last election, it is now expected the seat will fall back to the coalition, with former NSW state MP Andrew Constance expected to be one of few Liberals to win a seat on election night.

Labor luminaries have made appearances at the party function, including former treasurer Wayne Swan, while MPs Linda Burney and Tony Burke have joined in the celebrations.

Party supporters have said the results were already better than it 2019 defeat.

"This is the campaign we should have run last time," one person said.

Celebrations at the official function are set to go well into the night, with many punters enjoying the specially made Albo Ale beer.

Australian Associated Press