Lone ranga

23 August 2010 By John Foley Follow @johnsfoley

The country’s economic health means a hung parliament shouldn’t frighten markets. The biggest bargaining chip in the battle to court independent lawmakers could be the fate of the proposed supertax on miners’ profits. Sadly, the levy may not survive the political horsetrading.

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Australia's federal government elections still had no clear winner as of Aug. 23, two days after votes were cast, leaving the country facing its first hung parliament in 70 years.

Of the 150 seats in the country's lower house, the incumbent Australian Labor Party and opposition Liberal National Coalition were both expected to emerge with 73, short of the 76 needed to claim a majority.

Were a hung parliament confirmed, Prime Minister Julia Gillard would have a chance to form a new government by getting support from independent and Green Party candidates to secure a 76seat majority. Negotiations could take several weeks.

Gillard took over the leadership of the ALP in June after ousting Kevin Rudd, who had proposed a tax on miners' "super profits" that would become effective in 2012. Gillard modified the tax to reduce the effective level of proposed taxation.

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