Labor will also be struggling with a greatly diminished presence in the Lower House, a toxic relationship with the Greens, and a new Senate from next July in which mining magnate Clive Palmer's United Party will effectively hold the balance of power.
Shorten and Albanese tried to put the turbulent recent past behind them during the campaign, avoiding any public conflict, expressing mutual admiration, and emphasising a new party unity. Labor will present Shorten, 46, as a the youthful new face of a reinvigorated party.
He sprang to national prominence as head of the Australian Workers Union during the 2006 Beaconsfield mine disaster in Tasmania. and the following year won the federal seat of Maribyrnong in Melbourne. His rapid rise through parliamentary ranks to the inner ministry saw him picked early as a future leader despite being instrumental in bringing down Premiers Rudd and Julia Gillard.
Governor-General Quentin Bryce is Shorten's mother-in-law and Prime Minister Tony Abbott revealed that she offered to resign to avoid any perception of bias.
"I have thanked her for her magnanimity but declined to accept her resignation," Abbott said. Instead he asked her to stay on until March 2014, when she is due to retire.
Bill Shorten
Born: 1967 in Melbourne.
Family: Married to Chloe, daughter of the Governor-General, Quentin Bryce. Has three children.
Union work: Served as national secretary of Australian Workers Union. Came to prominence as the public face of Beaconsfield Mine disaster.
Political life: Member for Maribyrnong since 2007. Former minister for workplace relations, education, financial services, superannuation and assistant treasurer. From ALP right faction. One of the so-called faceless men behind the knifing of Kevin Rudd as PM in 2010. In June 2013 switched loyalty back from Julia Gillard to Kevin Rudd.
- AAP