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Speaking at a function in Sydney, Morrison said as leader of the party he takes responsibility for its “wins and losses” and was proud of the policies he delivered while in government.

He said he would hand over the leadership at the next party room meeting as that would be the “appropriate thing to do”.

Scott Morrison’s emotion on show as he concedes defeat to Anthony Albanese. (Getty)

“On a night like tonight it is appropriate to acknowledge the functioning of our democracy,” Morrison said. 

“I have always believed in Australians and their judgment and I have always been prepared to accept their verdicts and tonight they have delivered their verdict. 

“I congratulate Anthony Albanese and the Labor Party and I wish him and the Labor Party and I wish him and his government all the very best.”

Scott Morrison hugs his daughters Lily and Abbey at a Liberal Party function in Sydney. (AP)

He said the COVID-19 pandemic has “imposed a heavy price” on Australia but said he “still believes in miracles”.

“There is another great miracle which I want to give thanks for tonight and that is the miracle of the Australian people,” he said. 

“What Australians have endured over these past few years has shown a tremendous depth of character and resilience and strength and each and every day I have had the great privilege to lead this nation over the last more than three-and-a-half years. 

“And the one thing I have always counted on has been the strength and resilience and character of the Australian people.”

A photo that shows the size of the enormous Australian flag behind Scott Morrison as he addresses the Liberal Party function with his wife Jenny and daughters Lily and Abbey by his side. (AP)

Morrison said while the bruising election defeat was a “difficult time” for Liberal and Nationals supporters, he has no doubt that Australia is stronger as a result of his leadership.

“Tonight it is a night of disappointment for Liberals and Nationals but it is also a time for Coalition members and supporters all across the country to hold their heads high,” he said. 

“We have been a strong government. We have been a strong government. We have been a good government.

“Australia is stronger as a result of our efforts over these last three terms.”

Liberal and Labor HQs tell two different stories

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