Prime Minister Anthony Albanese has pledged unity in his second term as more Labor MPs are elected to parliament in a decisive victory for his government.

Labor stormed home to victory in the federal election in an emphatic landslide, reducing the coalition to one of their worst performances at the polls and losing their own leader in the process.

Spending the day after the election in his inner-western Sydney electorate of Grayndler, Albanese pledged he would lead a unified government.

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“The Australian people voted for unity rather than division,” he told reporters on Sunday.

“We will be a disciplined, orderly government in our second term, just like we have been in our first.”

He later spent time with party volunteers at a brewery, alongside his fiancée Jodie Haydon and Deputy Prime Minister Richard Marles.

With 75 per cent of the vote counted, Labor won 86 seats in the 150-seat House of Representatives, claiming a larger majority than their first term in office.

The coalition has been consigned to just 39 seats, with its lowest primary vote on record since the party’s formation.

The Greens are also yet to claim any seats.

After their 2022 success, teal independents held on to claim a second term, with the potential of more to join their ranks, including Nicolette Boele in the Sydney seat of Bradfield.

Labor has increased its majority through substantial swings across all states, picking up marginal seats and formerly coalition strongholds.

Among the significant wins for Labor was Peter Dutton’s electorate of Dickson, as he became the first opposition leader to lose his seat at an election.

Labor’s Ali France won the seat in her third time contesting the electorate, booting Dutton out of parliament after a 24-year career.

Albanese expressed sympathy for Dutton following the election outcome.

“It’s a tough business, politics, there’s no doubt about that, and it would have been a tough night for Peter.”

The outgoing Liberal leader said he would take full responsibility for the election loss as the coalition looks to rebuild.

“We didn’t do well enough during this campaign, that much is obvious,” Dutton told party supporters in Brisbane on Saturday.

Liberal Deputy Leader Sussan Ley said last night was a very difficult night for her party and it was reflecting on the results with humility.

“Today, our thoughts are also with many Liberal colleagues who have lost their seats, indeed all 150 candidates who ran for the Liberal and National parties across the country,” Ley said.

Treasurer Jim Chalmers said Albanese will go down in history as a Labor hero following the result.

“This was beyond even our most optimistic expectations,” he told ABC’s Insiders program on Sunday.

Soul-searching would soon begin for the coalition as they begin the process of electing a new leader.

Liberal Keith Wolahan, who is on track to lose his Victorian seat of Menzies after one term, said the party needed to rebuild.

“It was clear our party has an issue in urban Australia, which is where most people live ... so we need to turn our mind to that like we have never done before,” he said.

“We need to really dig deep and think about who we are and who we fight for and who makes up Australia.”

Nationals leader David Littleproud said Labor had run the stronger campaign, which made it hard to prosecute the case for a coalition government.

-With Reuters