The coalition is likely to hold 76 seats in the 150-seat lower house, as postal votes and recounts of existing votes have favoured Liberal and Nationals candidates over Labor.
Prime Minister Malcolm Turnbull's only comment yesterday came via Twitter where he wrote: "We need to listen very carefully to the concerns the Australian people have expressed at this election."
Opposition Leader Bill Shorten visited Launceston to congratulate Labor's "three amigos" - Ross Hart in Bass, Justine Keay in Braddon and Brian Mitchell in Lyons - who ousted three sitting Liberal members.
Mr Shorten didn't concede defeat but said Mr Turnbull would face many problems should he scrape back into office, not least being "white hot anger" within Liberal ranks.
Yesterday afternoon, the coalition appeared to have 70 seats to Labor's 67, with one Green and four independents.
Of the eight seats in doubt, the coalition leads in Chisholm, Dunkley, Gilmore and Forde and had clawed back Labor's lead in Hindmarsh to just 151 votes.
Coalition MPs pointed to a "disconnect" between the issues on which the government campaigned and the concerns of average families.
"When people are hurting, someone is going to get belted," said Liberal MP Ewen Jones, who's trailing by 620 votes but making up ground as postal votes are counted in his Queensland electorate of Herbert.
