Key regional independent MPs Tony Windsor and Rob Oakeshott have backed Labor to form a new Federal Government with the barest of possible margins 76-74.
The dramatic turn of events follows the decision by fellow independent Bob Katter to break ranks earlier today to back the Coalition.
Speaking to the main committee room at Parliament - packed with journalists, politicians staffers and even school children from Tamworth - Mr Windsor nominated broadband as one of the critical issues that tipped his hand to support Labor.
"We didn't sit there to add up the numbers to see who would win, but they were both good packages," Mr Windsor said of the toughness of his decision.
Mr Windsor said providing stability for the country had been another key factor in his decision.
"If a government is formed, how long could it last and that is a key deliberation in our view," Mr Windsor said.
"I make this plea to country people, some of whom don't agree with the Labor party. This isn't about philosophy, philosophy in terms of both these parties died about a decade ago," Mr Windsor said.
"This is about using the political system to advance the people we represent and those people in regional Australia."
He said he did not try to convince Mr Katter to follow suit and back Labor.
Mr Oakeshott said his decision was based on stability, as it was otherwise a "line ball, judgement call, six of one and half a dozen of the other".
"I've got splits in my community ... there is a job to do for the new Prime Minister and also the Oppostion Leader and that is to bring the country together," he said.
Mr Oakeshott said together with Messrs Katter and Windsor the independents had achieved a regional Australia package like "one that has never been seen before" and that will "turbo charge regional Australia".
"Equity has not been delivered to regional Australia for too long and that is about to change," Mr Oakeshott said.
In other policy gains, Mr Oakeshott highlight a tax forum by June 2011 in which the Henry Tax Review will be thrown into the public domain for full debate.
"Hopefully this demonstrates that this is not a weak parliament but a strong parliament."
Referendum at next election of Indigenous recognition as part of the constitution.
Earlier, Mr Katter said his decision to back the Coalition was based upon the responses of both major parties to his list of 20 areas of policy concern, which included issues such as carbon reduction, the mining tax, ethanol, the power of the major supermarkets, property rights and indigenous affairs.
He said that on eight of those 20 issues, the Coalition and its leader Tony Abbott had better policies, while Labor was superior on one, and on the remainder the difference was negligable or that both parties policies were unacceptable.
However, Mr Katter also lavished praise on Prime Minister Julia Gillard and Treasurer Wayne Swan, and said that if the other independents chose to back Labor he would try to provide stability for them.
He also made the distinction that if Mr Abbott forms government, he would not be part of that government and would continue to vote and act as an independent.
He rejected overtures from both sides bearing the offer of become a cabinet minister, which he rejected as he wanted to remain independent.
Mr Katter said he had been very disappointed by the treatment of former prime minister Kevin Rudd, who had pleaded with him to support Labor.
Mr Katter said there was "enormous anger" over Mr Rudd's axing and his decision would have been different had he still been Labor leader.
"Kevin’s thinking and my thinking are very similar, I’m very good friends with him," he said.
Mr Katter said the two had spent two nights together while he was "in agony" over the decision.
He said he did not know how Mr Windsor and Mr Oakeshott would vote.
Mr Katter said he would respect Mr Windsor’s and Mr Oakeshott’s decision on which party they would back.
"They have very moral convictions and they will follow through on those convictions," he told reporters.
"I will most certainly respect whatever decision they make."
He said his decision had not been tough to reach because it had just involved adding up the columns.
On issues such as broadband, the two sides were not far apart.
"There were issues like the national energy grid where the Rudd government was responsible for that and they will go down in the history books," he said.
"But the other side agreed with it so there was no distance between the two."
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