Australia set for hung parliament as voters punish PM

Gillard, who became the country's first woman prime minister in a party coup, was lagging behind her conservative rival in national polls by 70 seats to 72, according to public broadcaster ABC.

The Labor leader, 48, conceded her centre-left party would not gain the 76 seats needed for an outright majority and would have to rely on the support of parliament's projected four independent lawmakers.

"The people have spoken, but it's going to take a little while to determine exactly what they have said," Gillard told supporters in Melbourne.

"What we know from tonight's result is there will be a number of independents in the house of representatives playing a role as the next government of Australia is formed."

Analysts said Australia could be in limbo for up to two weeks as parties horse-trade for leadership of the 150-seat lower house, after Gillard's Labor became the first single-term government since 1932.