Australia's Labor government, led by Prime Minister Anthony Albanese, has won a second term, with projections indicating a larger majority in parliament.

Treasurer Jim Chalmers stated that the government will prioritise dealing with the consequences from the US-China trade war, which has rattled global markets, Reuters reported.

Labor gained momentum as the opposition advocated public sector cuts and a return to full-time office employment, which were heavily criticized and compared to Trump-era policies. US President Donald Trump's latest tariffs have also raised voter concerns about economic stability, according to Reuters.

Opposition leader Peter Dutton lost his seat as voters moved their attention from inflation to larger economic and trade issues.