Bill Shorten's second failed tilt at becoming prime minister will be his last after Labor suffered a crushing election defeat.
After five-and-a-half years leading Labor, Mr Shorten announced he would not nominate for the leadership in front of shattered supporters in Melbourne.
"Labor's next victory will belong to our next leader and I'm confident that victory will come at the next election," he said in his concession speech.
With his wife Chloe by his side, Mr Shorten said he was disappointed Labor couldn't form a government following the death of Bob Hawke on Thursday.
"I wish we could have won for the true believers, for our brothers and sisters in the mighty trade union movement," he said.
"I wish we could have done it for Bob."
The 52-year-old began thinking about becoming prime minister as a teenager, but his ambition will never be realised.
He rang Scott Morrison to concede shortly before taking the stage at 11.30pm.
"This has been a tough campaign - toxic at times," Mr Shorten said.
"But now that the contest is over, all of us have a responsibility to respect the result, respect the wishes of the Australian people and to bring our nation together."
Labor's ambitious reform program failed to win support, with the party bleeding votes in Queensland, NSW and Tasmania.
Long-time leadership rival Anthony Albanese hinted he would put his hat in the ring in a speech before Mr Shorten took the stage.
"This movement is much bigger than any individual," he said.
Some supporters and staff cried as they came to terms with the stunning upset.
Mr Shorten urged Labor to carry on the fight for workers' and womens' rights, the National Disability Insurance Scheme and Medicare.
"The things that matter most are the things that are worth fighting for," he said.
He also called for more action on climate change, despite admitting the party's plans may have cost them votes.
"Clearly on climate action, amongst others, parts of our nation remain deeply divided," Mr Shorten said.
"For the sake of the next generation, Australia must find a way forward on climate change."
He said he was disappointed for people who depend upon Labor but proud tehy had argued "what was right, not what was easy."
In a speech light on bitterness, he did fire a shot at the coalition's preference deals with Clive Palmer and One Nation.
"Clearly the coalition's arrangements with One Nation and Clive Palmer have hurt our vote in a lot of places where it mattered most, particularly in Queensland and NSW," Mr Shorten said.
The soul-searching now begins for Labor which will have been in opposition for almost a decade when the next term of government is due to end.
Australian Associated Press
