PM-elect Abbott hits the ground running

Prime Minister-elect Tony Abbott has declared Australia "open for business". Source: AAP

PRIME Minister-elect Tony Abbott has met with public service chiefs to discuss the coalition government's policy agenda and the economy, a day after his decisive win over Labor.

"My team will hit the ground running and deliver the stronger Australia and better future that you voted for," Mr Abbott said in an open letter to voters, released on Sunday.

The Liberal leader met in Sydney with three key department chiefs, Martin Parkinson (Treasury), David Tune (Finance) and Ian Watt (Prime Minister and Cabinet), before taking briefings from defence and intelligence agencies, including an update on the Syrian crisis.

Mr Abbott told the chiefs his first item of business was scrapping the carbon tax, along with other agendas.

"There's border security, there's economic security and the people expect, quite rightly, that the incoming government will build a strong and prosperous economy for a safe and secure Australia," Mr Abbott said.

The Liberal-National coalition is expected to hold between 85 and 93 seats in the 150-seat parliament after Saturday's electoral drubbing of the outgoing Rudd Labor government.

Labor could hold about 57 seats, about seven seats more than expected earlier in the year when Julia Gillard was struggling in the polls.

The crossbench will include independents Bob Katter (Kennedy) and Andrew Wilkie (Denison) and Australian Greens deputy leader Adam Bandt who retained his seat of Melbourne.

Two other seats are in contention, which could be wins for billionaire Clive Palmer in Fairfax and independent Cathy McGowan who looks like ousting Sophie Mirabella in Indi.

Despite picking up a clear majority in the lower house, the new coalition government won't hold the balance of power in the Senate.

But Mr Abbott said the Senate should respect the mandate of the incoming government.

The Greens currently hold the balance of power in the Senate and will share the balance with other minor parties when new Senators take their places from July 1 next year.

Greens leader Christine Milne said Mr Abbott's negotiation skills would be tested.

"It's clear that people didn't want Tony Abbott to have control of the entire parliament," she said.

"Now Tony Abbott's going to have to negotiate with an extraordinary array of people whose policies nobody's got any idea about."

The coalition faces negotiating with independents, Greens, the Palmer United Party, Democratic Labour Party, Liberal Democrats, the Australian Motoring Enthusiast Party and the Australian Sports Party.

Labor is searching for a new leader after Kevin Rudd declared on Saturday night he won't recontest the post he seized back from Julia Gillard in June.

Victorian MP and Right powerbroker Bill Shorten could run.

"I'm certainly not resolved about what should happen. I'm genuinely undecided," Mr Shorten said.

Mr Rudd's deputy and acting Labor leader Anthony Albanese is also a potential successor.

Another potential leader is former treasurer Chris Bowen, who retained his western Sydney seat of McMahon against tough odds.

ALP national secretary George Wright said the party had many talented people from which to choose.

"But once the leadership of the party is settled, I would hope - regardless of the rules - that once we settle that, we take that leader through to the next election."

Mr Shorten was adamant Labor was right to switch back to Mr Rudd because he had helped save seats.

"But there's no doubt the Australian people have still marked us down for talking about ourselves and being too divided," he said.

Mr Abbott's deputy Julie Bishop said there would be a party room meeting in Canberra on Monday where a new cabinet would be discussed.

"We will be very orthodox and methodical as we move into government," she told the ABC.

With some seats still being counted they expect to swear in a new ministry early next week, and until then Kevin Rudd remains caretaker prime minister, Ms Bishop said.

She said a trip to Indonesia soon was still a priority of Mr Abbott, who has vowed to stop the boats and turn them back to Indonesia when it is safe to do so.

The first asylum seeker boat since the coalition won government on Saturday has been intercepted off the Northern Territory coast.

There were 88 passengers and two crew on board.

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