Australian Prime Minister Scott Morrison conceded defeat after an election which saw the opposition Labor Party set to end almost a decade of conservative rule, possibly with the support of pro-environment independents.
Partial results showed Mr Morrison's Liberal-National coalition had been punished by voters in Western Australia and affluent urban seats in particular.
"Tonight, I have spoken to the Leader of the Opposition and the incoming Prime Minister, Anthony Albanese. And I've congratulated him on his election victory this evening," Morrison said, stepping down as leader of his party.
The 54-year-old outgoing leader noted that voter support for major parties had fallen in the election.
"I think about the upheaval that is taking place in our nation, and I think it is important for our nation to heal and to move forward," he said.
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Mr Morrison's voice cracked with emotion as he thanked his wife Jennifer and his daughters, "the loves of my life".
"I have no doubt under strong leadership of our coalition, three years from now I am looking forward to the return of a coalition government," he added.
Labor had yet to reach the 76 of the 151 lower house seats required to form a government alone. Final results could take time as counting of a record number of postal votes is completed.
Labor leader Anthony Albanese said he wanted to bring Australians together as he made his first comments after leading his party to an election victory after nine years in opposition.
"I want to unite the country," Mr Albanese told reporters as he left his home to attend a Labor Party celebration in Sydney.
"I think people want to come together, look for our common interest, look towards that sense of common purpose. I think people have had enough of division, what they want is to come together as a nation and I intend to lead that."
A strong showing by the Greens and a of group of so-called "teal independents", who campaigned on policies of integrity, equality and tackling climate change, means the makeup of the new parliament looks set to be much less climate-sceptic than the one that supported Morrison's pro-coal mining administration.
Centre-left Labor had held a decent lead in opinion polls, although recent surveys showed the Liberal-National government narrowing the gap in the final stretch of a six-week campaign.
A Newspoll survey by The Australian newspaper out on election day showed Labor's lead over the ruling coalition dipping a point to 53-47 on a two-party-preferred basis, where votes for unsuccessful candidates are redistributed to the top two contenders.
In at least five affluent Liberal-held seats, so-called "teal independents" looked set to win, tapping voter anger over inaction on climate change after some of the worst floods and fires to hit Australia.
Australian Treasurer Josh Frydenberg said it would be "difficult" for him to hold the long-held Liberal seat of Kooyong in Melbourne to an independent newcomer in one of the biggest hits to the government.
Early returns suggested the Greens had also made ground, looking to pick up to three seats in Queensland.
Greens leader Adam Bandt, who retained his inner city Melbourne seat, said climate was a major issue for voters.
"There was an attempt from Labor and Liberal to bury it, and we were very clear about the need to tackle climate by tackling coal and gas."
Mr Morrison and Albaneses earlier cast their votes in Sydney after making whistle-stop tours across marginal seats in the final two days of a campaign dominated by rising living costs, climate change and integrity.
As Labor focussed on spiking inflation and sluggish wage growth, Mr Morrison made the country's lowest unemployment in almost half a century the centrepiece of his campaign's final hours.
Meanwhile, France's outgoing foreign minister Jean-Yves Le Drian said Mr Morrison losing polls on Saturday "suits me fine".
"The prime minister's defeat suits me fine," he said, after Canberra in September angered Paris after it ditched a submarine deal with France worth tens of billions of euros.
