Ms Gillard thanked all of the independents, including Bob Katter who decided to back the Coalition, for the "tone and tenor" of their negotiations.

She had no inkling of the independents' decision and only learned that Tony Windsor and Rob Oakeshott would back her to form government by watching their live press conference.

‘‘So let’s draw back the curtains and let the sun shine in, let our parliament be more open than it was before’’ she said.

Ms Gillard thanked the Opposition Leader Tony Abbott for the "common courtesy" of phoning her after Tony Windsor and Rob Oakeshott made clear they wouldf back Labor and give it the 76 seats it required to govern.

‘‘Ours will be a government with just one purpose, and that’s to serve the Australian people,’’ she said.

‘‘We will be held to higher standards of transparency and reform and it’s in that spirit I approach the task of forming a government.’’

Ms Gillard said it was likely she would be in a position early next week to swear in a new ministry.

The Treasurer, Wayne Swan, who has been at the forefront of the negotiations, said Labor's success reflected Ms Gillard's consensus-building style of leadership.

Labor would govern in the best interests of the Australian people, Ms Gillard said.

‘‘I know that if we fail in this solemn responsibility, we will be judged harshly when we next face the Australian people at the next election,’’ she said.

Ms Gillard reached out to Mr Abbott and Nationals leader Warren Truss, saying the closeness of the election showed voters wanted all parties to find more common ground.

- Staff reporters with AAP