Labor to form government

Labor has successfully formed a minority federal government after clinching the support of independents Tony Windsor and Rob Oakeshott.

After 17 days of uncertainty, regional NSW MPs Mr Windsor and Mr Oakeshott finally decided to throw their support behind the Labor Party.

The decision will see Julia Gillard remain as prime minister after taking a narrow margin in the House of Representatives, 76 to 74.

Mr Oakeshott and Mr Windsor announced their decision at a press conference at 3pm today AEST.

In what he described as a very difficult decision, Mr Oakeshott said he had dealt with splits in the community and splits in his family on which party to back.

"It is not a mandate for anyone, nor is it an endorsement," Mr Oakeshott said.

Mr Oakeshott said he was "thoroughly unimpressed" with the political parties in Australia.

But Mr Oakeshott said the minority government would deliver a "cracking parliament".

"It's going to be ugly, but it's going to be beautiful in its ugliness," he said.

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Mr Windsor and Mr Oakeshott had been negotiating with both Ms Gillard and Opposition leader Tony Abbott since the August 21 election.

"I want to thank both leaders for the way they've treated us during this process," Mr Windsor said before announcing his decision.

"I will reserve the right to represent my constituency on any vote in the parliament and also reserve the right to move a no-confidence motion in the government as I see fit."

Queensland independent Bob Katter announced his decision to back the Coalition in a hung parliament in an interview with journalists in his Canberra office earlier this afternoon.

Both leaders made their final pitches to the independents today.

Labor required just two of the three MPs to form a minority government, while the coalition required all three.