Prime Minister Anthony Albanese will form a majority government after Labor picked up the necessary 76 seats.
Labor reached the target on Monday night after retaining the Melbourne seat of Macnamara, according to ABC election analyst Antony Green.
The seat was secured for Labor incumbent Josh Burns following a tight, three-way contest between Labor, the Greens and the Liberals.
The result comes more than a week after the election which saw Labor reclaim government after almost a decade in opposition.
Counting still continues in two marginal seats, with the results still close to call in the NSW seat of Gilmore and the Melbourne seat of Deakin.
Labor could win a 77th seat in the House of Representatives if it manages to hold on in Gilmore.
Incumbent Fiona Phillips is currently leading on a razor-thin margin of just 142 votes against Liberal challenger Andrew Constance.
Meanwhile, Labor’s Matt Gregg has narrowed the gap against Liberal incumbent Michael Sukkar in Deakin, where the coalition is ahead by 619 votes.
Large numbers of absentee and declaration votes are still to be counted.
It comes as Mr Albanese is set to announce his cabinet on Tuesday following caucus meetings in Canberra on Tuesday.
The frontbench will be formally sworn in at a ceremony at Government House on Wednesday.
An interim cabinet of five members was sworn in days after Mr Albanese claimed victory in the federal election on May 21.
They included Deputy Prime Minister Richard Marles, Treasurer Jim Chalmers, Foreign Minister Penny Wong and Finance Minister Katy Gallagher.
While Mr Albanese had earlier indicated MPs who held a shadow ministry in opposition would likely hold a similar portfolio in government, some changes are expected.
Among them will be a replacement for home affairs, with previous Labor spokeswoman Kristina Keneally failing to win the seat of Fowler in Sydney.
Labor’s previous environment spokeswoman Terri Butler also lost her seat of Brisbane to the Greens.
Other portfolios have already been announced, with Linda Burney set to be indigenous affairs minister and the second Aboriginal person in the role.
Labor’s caucus meeting on Tuesday may not be a full meeting, with two seats still in doubt following the May 21 election.
Mr Albanese had pledged he would treat new Opposition Leader Peter Dutton with respect, but said the government’s mandate following the election should also be respected.
