Labor sweeps to victory
ABC elections analyst Antony Green is predicting Labor will return to power after 11 years of Coalition government with a 20-seat majority.
The ABC elections computer predicts 85 seats for Labor in the new Parliament.
"At this stage we are looking like 85 seats for Labor, and that gives Labor a majority of 20 seats at this stage," Mr Green said.
"Now there may be a bit of moving up and down on that but at this stage that is settling down.
"If Labor starts to slip behind in a few Queensland seats then maybe Western Australia will matter, but at this stage it's continuing to track towards a Labor government."
"The picture I'm seeing is that the Government is behind in everything," he added.
"We've got them [Labor] gaining 16 - I'm always prepared to say that's up or down two - but they're also ahead in six other seats which we still class as doubtful which were Liberal-held," he said.
"So that's why on this sort of basis - this is a probability-based exercise - they're not going to suddenly turn around in those."
Labor's deputy leader Julia Gillard says Labor has all but won.
"On the numbers we're seeing tonight, Labor is going to form a government," she said.
With counting underway in Queensland, Labor is polling strongly in leader Kevin Rudd's home state, strengthening its position.
Prime Minister John Howard is facing a battle to keep his seat of Bennelong.
Labor's Maxine McKew has led since counting began, but the two-party preferred count is neck and neck.
The Coalition also looks set to lose the bellweather seat of Eden-Monaro.
Former prime minister Bob Hawke has told Sky TV that Labor has won.
But Defence Minister Brendan Nelson is still reluctant to concede that the election is lost.
"It is looking very difficult for the government," Mr Nelson said. "It doesn't look as if it's going all that well for us in Queensland."