Australia's Prime Minister Julia Gillard has acknowledged that she has failed to achieve an outright victory in the general election, and she would look to independents to hold onto power.
The centre-left Labor Party leader said she would continue to lead the government in a caretaker mode until the final results of the elections were known.
An election expert from Australia's ABC, Antony Green, said that the counting suggested the result was too close to call and he believed a hung parliament was now likely.
The Australian Electoral Commission's tally put the government ahead on 54 seats to 48 for the Opposition, with nearly 19% of the vote counted.
Exit polls taken shortly before polling closed showed Ms Gillard's government retaining power with a slim majority.
A Channel Nine exit poll predicted the ruling Labor Party would win the election with 52% of the overall vote to 48% for the Liberal/National coalition.
But the poll also reported an average 5.1% swing against Labor in crucial marginal seats in the most populous states of Queensland and New South Wales where the results will be closer and where the election will be won or lost.
The campaign was dominated by personalities.
Julia Gillard ousted her predecessor Kevin Rudd a few months ago.
Opposition leader Tony Abbott has successfully exploited Labor's internal divisions following the sudden change in leadership.
Julia Gillard is attempting to become Australia's first elected female Prime Minister.
