The coalition's chances of forming a minority government have taken a dramatic change for the better following counting of votes in two key seats.
Analysts have given the crucial Tasmanian seat of Denison to the independent Andrew Wilkie after he drew 1375 votes ahead of Labor's Jonathan Jackson.
If Mr Wilkie wins the seat it will push the number of independents in the new parliament to four, adding confusion to an already complex situation.
Neither the coalition nor Labor will reach the 76 lower house seats needed to govern in their own right.
Instead, both will have to negotiate support for a minority government with a crossbench that could include six MPs.
The coalition is in the box seat with 72 seats so far, to Labour's 71.
Labor's chances in Hasluck (WA) have been dealt a blow with the first batch of postal votes breaking the way of the Liberals' Ken Wyatt.
Mr Wyatt has extended his lead over sitting MP Sharryn Jackson to 533 votes, giving the coalition hope it will finish poll counting with 73 seats.
There was more good news for the coalition when the Australian Electoral Commission (AEC) added the Victorian Labor seat of Corangamite to its doubtful list.
The Liberals' Sarah Henderson picked up about 57 per cent of the postal vote count taking her to within 700 votes of sitting Labor MP Darren Cheesman.
Liberal frontbenchers Bruce Billson (Dunkley) and Andrew Southcott (Boothby) have managed to get themselves out of trouble as both extended their advantages.
Mr Billson leads Labor's Helen Constas by 906 votes while Dr Southcott has a 813 vote lead over the ALP's Annabel Digance.
Labor hopes Brisbane might fall its way as sitting MP Arch Bevis reels in former Liberal MP Therese Gamboro.
Mr Bevis trails Ms Gamboro by about 650 votes.
The vote changes were reflected in the odds betting agencies are offering about which of the two major parties will form government.
SportsBet is offering $1.87 for both sides, after Labor blew out from $1.55 and the coalition tightened from $2.36.
