Miss Gillard's Labour Party is now just two seats away from sealing an overall majority after election victory after winning support of Tasmanian MP Andrew Wilkie, a day after the announcment of a pact with the Green Party.

Tony Abbott's Liberal/National coalition emerged as the single largest party in the Australian election but fell three seats short of a majority. With five non-aligned MPs holding the key to victory, the large parties are attempting to lure support by opening their manifesto pledges to negotiation.

 Treasury Department bureaucrats dealt a blow to Mr Abbott by declaring there was a shortfall in the Opposition's forward estimates, ranging from A$7 billion to A$11 billion.

Independent MPs Tony Windsor and Rob Oakeshott, whose support is vital in the formation of a future minority government, have demanded an explanation about the shortfall from Coalition leader Tony Abbott, who disputes the findings.

"That's a lot of money," said Mr Oakeshott. "It's more than what I've got in my wallet."
Mr Windsor says he has not entirely ruled out the possibility of backing a minority Coalition government, but points out that the Treasury revelation does raises important questions of trust.

"It's not a game-breaker, but it places some question marks within my mind at least," he said. "It's not so much about numbers as it is about what people went to the election on, and the trust that we can have in them."
Almost a fortnight after Australia went to the polls, Miss Gillard, who has been in office just two months, is now the front runner in the battle for independent support

Mr Wilkie, a harsh critic of the last Right-wing government, formally agreed to support Ms Gillard's bid to form a minority government. He decided to back Labour after Miss Gillard agreed to several requests, including a major investment for Tasmania's Royal Hobart Hospital and measures to restrict Australia's chronic gambling problem.
"The Australian Labor Party best meets my criteria that the government must be stable, competent and ethical," he said

His decision means Labor has 74 seats, two short of the majority needed to secure power. The opposition has 73 seats and now needs the support of Mr Oakeshott, Mr Windsor and Bob Katter to assemble a majority.
The trio yesterday held back-to-back meetings in Canberra with senior figures from both parties. They are not expected to reach a final decision until early next week -- at the earliest.