Sawt Falasteen - Left-leaning incumbent PM triumphs in Australian election: projections

National broadcaster ABC said Albanese's Labor party would "form government in the next parliament".

"It's a big swing that's on at the moment. I can't see how it turns around," said respected ABC election analyst Antony Green, with almost 40 percent of votes counted.

"This could be a big win for Labor. But it's certainly a win."

Labor were leading in 70 seats with 40 percent of votes counted, according to official projections which put it within striking distance of the 76 needed for a parliamentary majority.

The right-leaning Liberal-National Coalition was leading in a combined 32 seats, the Australian Electoral Commission said, with early data unavailable in 25 races.

Millions of Australians chose between Albanese, 62, and his conservative challenger Peter Dutton.

Hungry voters munched on barbecued "democracy sausages" after casting their ballot -- a polling day rite of passage -- while others in bright swimwear crammed into booths after taking an early morning plunge.

US President Donald Trump has loomed over the vote since its earliest days, and there is keen global interest in whether his tariff-induced economic chaos will influence the result.

"The holy grail is back-to-back wins that we're aiming for today," Albanese told Channel Seven.

"I'll leave nothing on the field over the next three years if I'm re-elected as Australia's prime minister."

Though trailing by a few percentage points in the polls, Dutton said "quiet Australians" could yet deliver a surprise.

"I think they're going to go into the polling booth and say: 'You know what? I am not going to reward Anthony Albanese for the last three years'," he told Channel Nine.

- 'Mad as a cut snake' -

Before the first vote was even counted, speculation was already mounting over whether Dutton could survive an election loss.

"I am 54. I am still very young, and I've just got a burning passion for this country," Dutton replied, when asked if he would stay on as opposition leader.

The first polls opened at 8:00 am (2200 GMT) on Australia's east coast, followed later by the country's western cities and far-flung island territories.

A total of 18.1 million voters have enrolled for the election. About half of them cast an early ballot, the election authority said.

Voting is compulsory, enforced with fines of Aus$20 (US$13), leading to turnouts that top 90 percent.

Albanese has promised to embrace renewable energy, tackle a worsening housing crisis, and pour money into a creaking healthcare system.

Liberal Party leader and former police officer Dutton wanted to slash immigration, crack down on crime and ditch a longstanding ban on nuclear power.

Some polls showed Dutton leaking support because of Trump, who he praised this year as a "big thinker" with "gravitas" on the global stage.

"I mean, Donald Trump is as mad as a cut snake, and we all know that," said voter Alan Whitman, 59, before casting his ballot on Saturday.

"And we've got to tiptoe around that."

- High prices -

As Australians soured on Trump, both Dutton and Albanese took on a more pugnacious tone.

"If I needed to have a fight with Donald Trump or any other world leader, to advance our nation's interest, I'd do it in a heartbeat," Dutton said in April.

Albanese condemned Trump's tariffs as an act of "economic self-harm" and "not the act of a friend".

Economic concerns have dominated the contest for the many Australian households struggling to pay inflated prices for milk, bread, power and petrol.

"The cost of living -- it's extremely high at the moment. So, taxes as well, is also another really big thing. Petrol prices, all the basic stuff," human resources manager Robyn Knox told AFP in Brisbane.

Small business owner Jared Bell had similar concerns.

"Our grocery shops are definitely way more expensive than they were a couple years ago," he said.

- Campaign stumbles -

Coal-mining superpower Australia will choose between two leaders with sharply contrasting ideas on climate change and emissions reduction.

Albanese's government has embraced the global push towards decarbonisation, warning of a future in which iron ore and polluting coal exports no longer prop up the economy.

Dutton's signature policy was a US$200 billion scheme to construct seven industrial-scale nuclear reactors, doing away with the need to ramp up renewables.

Albanese tumbled backwards off the stage at a heaving campaign rally, while Dutton drew blood when he hit an unsuspecting cameraman in the head with a stray football.

J.Saleh--SF-PST