Australia's decision to deny constitutional recognition to its First Peoples could herald a more divisive "Trump-style" politics in the next national election, while pushing the prime minister to pivot to cost of living issues, some analysts said.

Prime Minister Anthony Albanese misread the public mood, analysts said on Sunday, as he took responsibility for the referendum result, in which only the national capital voted "Yes" from among eight states and territories.

More than 60% of Australians voted "No" to altering the constitution to recognize Aboriginal and Torres Strait Island people through the creation of an Indigenous advisory body.