ABC election analyst, Antony Green, says the Coalition has won 76 seats and Malcolm Turnbull will be able to form government in his own right.
The ABC has called the Queensland seats of Flynn and Capricornia for the Coalition, bringing their total to 76.
This means the Coalition now has enough seats to form majority government and will not have to rely on crossbenchers to govern.
While hopes were high for a clear Coalition victory in the lead up to election day, it quickly became apparent after the close of polls on July 2 that the result would be much tighter than anticipated.
On election night, a Liberal party source told BuzzFeed News the result was "a complete disaster for Turnbull".
"Look, we can still win, but it'll be by a bee's dick margin," the source said.
As counting continued in the week after the election, Turnbull secured the support of independents Bob Katter and Cathy McGowan in confidence and supply.
However, he did not claim victory until Sunday afternoon, eight days after the close of polls and following a concession speech from Labor leader Bill Shorten.
Labor has claimed victory for Dr Anne Aly in the West Australian seat of Cowan, another close seat. Aly, a counter terrorism expert, is the first Muslim woman elected to the House of Representatives.
Congrats Anne Aly for her win in Cowan. A great new voice for her community, her state & our party. Elected despite the disgraceful smears.
Labor is currently leading in Herbert and Hindmarsh, the final two seats that are still too close to call.