Australians swing against ruling coalition in knife-edge election

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Australian Labor Party opposition leader Bill Shorten high-fives with supporters as he holds his daughter Clementine at his election night party in Melbourne, July 2, 2016 on Australia's federal election day. REUTERS/Jason Reed

Australia was headed for a hung parliament or a minority government with half the votes counted in a national poll on Saturday, potentially blocking Prime Minister Malcolm Turnbull’s ability to enact key economic reforms.

Official electoral data around halfway through the count for the House of Representatives showed a 3.3 percent swing away from the Liberal-led coalition government shortly before counting officials clocked off for the evening.

The tight vote is a major blow for Turnbull whose gamble on a risky double dissolution of parliament in a bid to oust intransigent independents in the upper house Senate blocking his agenda appears to have backfired.

“Friends, we will not know the outcome of this election tonight, indeed, we may not know it for some days to come,” a jubilant Bill Shorten, leader of the opposition Labor Party, told supporters in Melbourne just before midnight. “But there is one thing for sure – the Labor Party is back.”

Opinion polls heading into Saturday’s vote had showed a potentially tight vote after the landslide victory that brought the coalition to power in 2013, but just how tight still caught many by surprise.

Former prime minister Tony Abbott told Liberal Party followers it was a “difficult night” after he successfully retained his Sydney seat.

On official projections issued before counting stopped, the coalition was expected to hold 71 seats, against the opposition Labor Party’s 68 seats and five to independents and the Greens Party.

With just six seats left to be determined in the House of Representatives, it was unclear if the coalition would win enough to form a government without an alliance with small parties and independents to get a majority.

“It is a very, very close count,” Turnbull told the party faithful at coalition headquarters in Sydney after Shorten spoke. “I can report that based on the advice I have from the party officials, we can have every confidence that we will form a coalition majority government in the next parliament.”