Australian elections 'on a knife edge'

The results of Saturday's Australian election are still too close to call, with the count failing to deliver either major party enough seats to form a majority government.

Counting was suspended in the early hours of Sunday morning, when the opposition Labor Party appeared to be leading with 72 seats, with the government's Liberal National Coalition holding 66 seats.

It has since resumed, but the Electoral Commission has warned it could take "up to a month" for the rest of the vote to be finalised.

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Independents look likely to take five seats and a further seven seats are still too close to call.

The result means that both of the major parties will require the support of key independents to form even a minority government and will still have to deal with a hostile upper house.

Prime Minister Malcolm Turnbull had gambled on a double dissolution election in order to stabilise the Australian government after anti-union legislation was rejected twice in the upper house. However, after a marathon eight-week campaign, the result has brought yet more political chaos.

"Instead of ending Australia's dismal decade of politics, the election appears to have set it up for another round," says Sydney Morning Herald political editor Peter Hartcherd. "There is still a chance that the election might lead to sanity and stability, but hope is dimming fast."

Turnbull and Labor leader Bill Shorten have both reportedly started canvassing support from independent crossbench MPs. Despite the political uncertainty, Turnbull is confident he will be able to form a majority government.