Aust election: Gillard running out of options

Australian Prime Minister Julia Gillard. Photo / Getty Images

Prime Minister Julia Gillard will front the National Press Club today as the odds of being able to form government seem stacked against her.

Ms Gillard had been using the two-party preferred figures, which favoured Labour, to talk up her chances of forming a minority government, with the support of independents.

But that card has now been taken out of her hands, with a vote count update from the Australian Electoral Commission giving the coalition a lead of nearly 2000 votes in two-party preferred terms.

The coalition has claimed 73 seats ahead of Labour's 72 seats as both struggle to woo key independents, who all come with separate wish lists.

Bookmakers Centrebet had shortened the coalition's odds of forming government from $1.50 to $1.43 while Labor's odds had blown out from $2.50 to $2.70.

A punter placed $50,000 on the coalition to win at $1.50 in the biggest bet since polling day.

The Labour leader will front the press club in Canberra to reveal a set of proposals for parliamentary reform designed to appeal to independents whose support is crucial if she has any chance of continuing as prime minister.

Andrew Wilkie, the new independent member for the Tasmanian electorate of Denison, has called for further meetings with Ms Gillard and Opposition Leader Tony Abbott.

Mr Wilkie has said he is keen to make a decision about whether he will back either party - or none - as early as later today.

He said the two-party preferred vote result did not matter.

"That's not relevant to me," he told ABC Radio.

Mr Wilkie has a long wish list in his back pocket.

"What I am trying to achieve here is catch-up, I am not pork barrelling, I am trying to achieve some equity for the people of Tasmania, for the people of Denison in particular."

Fellow independent Tony Windsor said he was doubtful a decision that would break the political deadlock would be made before the end of the week.

"We've really just embarked on the process of information gathering ..." Mr Windsor told ABC Radio.

Another independent, Bob Katter, will hand his wish list to both parties later today.

Nationals leader Warren Truss was playing down his differences with Mr Katter saying the pair had a history of co-operation, despite the Kennedy MP's frequent criticism of him.

- AAP