AdvertisementJulia Gillard: "Negotiations will be conducted with propriety, integrity and diligence"
Australian Prime Minister Julia Gillard has held initial talks with independent candidates to try to form a government after an inconclusive election.
Ms Gillard said she would continue to provide "stable" government as final votes are counted.
She acknowledged that neither her Labor Party nor the opposition conservative coalition was likely to win the 76 seats needed for an outright majority.
Australia's ABC is forecasting 72 seats for Labor and 73 for the conservatives.
With 78% of votes counted, Labor is already set to win 72 seats, and Tony Abbott's Liberal/National coalition is on course for 70, according to national broadcaster ABC.
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"It is clear that neither party has earned the right to government in its own right," Ms Gillard said. She added that Labor had won the most votes overall nationally, if minor parties are discounted.
But opposition leader Tony Abbott, said it was clear Labor had lost its parliamentary majority and its legitimacy.
"There was a savage swing against this government," he said. Mr Abbott said he had also made contact with the independents candidates.
The election comes two months after Ms Gillard ousted Kevin Rudd in a controversial leadership challenge
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