(Bloomberg) -- Australian Prime Minister Malcolm Turnbull declared victory in national elections, saying his Liberal-National coalition had won the most seats in the lower house of parliament.
“We've won this election,” Turnbull told reporters in Sydney on Sunday, following a concession speech by opposition leader Bill Shorten.
It's still unclear whether Turnbull will lead a majority government or one that needs the support of smaller parties and independents. The coalition has won 74 of 150 House of Representative seats and is projected to take 76, or the slimmest majority, according to the Australian Broadcasting Corp.
With about 80 percent of votes counted, the ABC has called 66 seats for Labor, five to other parties, while another five remain too close to call. The nation has been politically paralyzed since the July 2 ballot failed to produce a clear winner, forcing electoral officials to comb through postal votes to determine the outcome.
“There is a difference between a small majority and a minority,” said Martin Drum, a senior political lecturer at Notre Dame University in Perth. “A small majority means more stability.”
The coalition went into the election with 90 seats in the House to Labor's 55. Those results have raised questions about Turnbull's leadership and left him without a strong mandate for much-needed economic and fiscal reforms. The 61-year-old seized the Liberal leadership from Tony Abbott in a party coup in September to become prime minister.
The prime minister may need to rely on the support of a disparate bunch of lawmakers and may find it harder to push through much needed economic and fiscal reforms. The result could prolong a period of political instability in Australia, just as ratings agencies warn the nation's AAA credit rating faces a potential downgrade unless the country's budget deficit is reined in.
“I don't envy Mr. Turnbull,” Labor Party leader Shorten said earlier on Sunday.
Among the potential kingmakers are parties seeking a crackdown on gaming companies, protectionists demanding more support for manufacturing and a lawmaker vehemently opposed to selling agricultural land to foreigners.
To contact the reporters on this story: Vivek Shankar in Sydney at vshankar3@bloomberg.net, Jason Scott in Canberra at jscott14@bloomberg.net. To contact the editors responsible for this story: Edward Johnson at ejohnson28@bloomberg.net, Chris Bourke, Darren Boey
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