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JULIA Gillard has been handed back the reins of power after two of the three country independents decided to support a Labor Government.
After 17 days of uncertainty, Tony Windsor and Rob Oakeshott backed Ms Gillard, giving her the magic number of 76 seats in the 150-seat House of Representatives - enough to form a minority government.
Ms Gillard thanked the independents and the Greens who had joined Labor to give it the numbers to form government.
The Prime Minister has arrived at Government House to present her case to the governor-general to form a minority government.
Ms Gillard will formally advise Governor-General Quentin Bryce she can form a minority government with 76 seats.
The Prime Minister revealed in order to secure the votes of Mr Windsor and Mr Oakeshott she had pledged $800 million to a regional infrastructure program, with $573 million of the fund spent with the guidance of regional development officers.
"So will the next round of funding from the education investment fund."
The government will ensure its national broadband network will have uniform wholesale prices across the country, with regional Australia given priority as the network rolls out.
Ms Gillard said those commitments came on top of Labor's general commitment to the $6 billion regional infrastructure fund and the telly-health and building better cities programs outlined during the election campaign.
"In total this means, for regional Australia, they can look forward to benefits in the order of $9.9 billion," she said.
"But that's a fair share, it's been worked through with Mr Oakeshott and Mr Windsor and I thank them for working through that with me and (Treasurer) Wayne Swan."
Ms Gillard also revealed she had offered Mr Oakeshott the job of driving reforms for regional Australia.
She also paid tribute to north Queensland independent MP Bob Katter, even though he announced earlier today he would back the Coalition to form a minority government.
"Labor is prepared to deliver stable, effective and secure government for the next three years," Ms Gillard said at her press conference, held just after 4.30pm.
"In remarkable times, there’s opportunity.
"Let our parliament be more open than it ever has before.”
Ms Gillard said she would "always be working for this nation’s future".
"We will govern in the best interests of the Australian people," she said.
Mr Oakeshott said he wanted to go home to his family tonight to discuss the offer of a ministry before accepting.
“My vote will be going to the Gillard government,” Mr Windsor said.
He said he would not block supply, would not support frivolous no-confidence motions, but said he reserved the right to move a no-confidence motion in the government as he saw fit.
He also said he would vote for each piece of government legislation on its merits.
Mr Windsor welcomed the school students from his electorate of New England, who were watching his press conference live in Parliament House, alongside fellow independent Rob Oakeshott.
“This probably will be a fairly historic day,” he said to them.
He thanked Ms Gillard and Mr Abbott for the way they had negotiated with him.
“Both sides of the debate have put regional packages together … and they’ve both done a great job,” he said.
“They’ve recognised quite clearly that regional Australia has missed out in the past.”
Mr Oakeshott said he would give confidence and supply to Ms Gillard.
He said the three big issues for him were broadband, climate change and the "crisis in regional education”.
But he said his decision was “an absolute line ball” and “on points”.
"This is not a mandate for any party nor is it an endorsement of any philosophy, brand or campaign," he said.
"We are all proud and strong independents."
Bob Katter, meanwhile, backed the Coalition, giving Opposition Tony Abbott 74 seats - close, but not close enough, to put the conservatives back into power.
"I am confirming that I am backing the Coalition," Mr Katter said.
Mr Katter revealed just after 1.30pm in his Parliament House office he would support the Coalition because Mr Abbott gave him more undertakings on his 20-point wish list.
“I will be backing the Coalition,” Mr Katter said this afternoon.
Mr Katter said if Kevin Rudd had still been Prime Minister, he would have sided with his fellow Queenslander.
Mr Katter said he had not told Prime Minister Julia Gillard or Opposition Leader Tony Abbott of his decision before calling the press conference.
"I haven't told anybody at all,'' he said.
And he said after 17 days of uncertainty, it was time for a decision to be made.
“I can’t run a Dutch auction for another week,” he said.
Mr Katter said Mr Abbott had agreed to meet eight of the 20 points on his policy wish list.
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