Labor stormed home to victory in a landslide, winning a swathe of seats across multiple states and unseating Opposition Leader Peter Dutton in his own electorate in the process.
Expanding on its majority in the House of Representatives, Labor claimed 87 seats, while the coalition picked up 40 as its primary vote plunged to almost historic lows.
Despite winning back-to-back elections, Mr Albanese said there was no time to waste in achieving a second-term agenda.
"From (Sunday), back at work ... we take up this task with new hope, new confidence and new determination," he told the Labor Party faithful in Sydney on Saturday.
"Together, we are turning the corner, and together, we will make our way forward, with no one held back and no one left behind."
Labor recorded large swings across Queensland, Victoria, NSW, South Australia and Tasmania, making significant gains in former coalition heartland.
Among the biggest victories was Labor's Ali France defeating Opposition Leader Peter Dutton in his Brisbane-based electorate of Dickson.
Ms France won the seat after three attempts, with Mr Dutton being the first opposition leader to lose his electorate at a federal election.
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," he told party supporters in Brisbane.
"There are good members, good candidates, who have lost their seats or their ambition and I'm sorry for that.
"We have an amazing party and we'll rebuild."
Behind in the polls towards the end of 2024, Labor had defied the odds to expand its reach in parliament, conducting a campaign on the cost of living and expanding access to Medicare.
The prime minister has become the first leader to win back-to-back elections since John Howard in 2004.
Mr Albanese promised he would work hard for all Australians.
"We do not need to beg or borrow or copy from anywhere else, we do not seek our inspiration overseas. We find it right here, in our values and in our people," he said.
"We renew the great responsibility and the opportunity of government and with pride and purpose, optimism and determination, with faith in the fair go and faith in each other."
Meanwhile, US Secretary of State Marco Rubio congratulated Mr Albanese on his election victory and said the United States looked forward to deepening the bilateral relationship.
"The United States looks forward to deepening its relationship with Australia to advance our common interests and promote freedom and stability in the Indo-Pacific and globally," Mr Rubio said in a statement.
with Reuters
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