Vanquished Australian opposition shifts left with new leader

Australia's opposition is set to anoint Anthony Albanese as its new leader, hoping to win back the working class after a shock election defeat to the conservative government.

The Australian Labor Party unexpectedly lost to incumbent leader Scott Morrison on May 18, despite leading in the polls running up to the election.

Albanese, from Labor's left faction, replaced Bill Shorten when the former union chief stepped down hours after losing the vote.

The 56-year-old will be officially confirmed by the Labor caucus on Thursday after the uncontested leadership ballot.

Albanese vowed to create a "larger, more inclusive party" amid soul-searching within the ranks over the defeat.

"I understand that it is a big mountain that we have to climb," Albanese told reporters in Sydney, where he holds his lower house seat, on Monday.

"I want to build relationships between the Labor Party and those people who voted for us, but also those people who wanted to vote for us, who were open to vote for us, but who felt like they couldn't."