Kerryn Phelps says she won't be a wrecker in Parliament

Australian Government Loses Majority With Election Defeat

Australia government loses crucial vote, leaving Israel embassy move in doubt

Australian Prime Minister Scott Morrison has ruled out any chance of an early general election despite his coalition government looking set to lose its majority.

Mr Sharma was attempting to retain the seat held comfortably by former prime minister and popular local member Malcolm Turnbull, who was dumped as leader of the party in August before resigning from Parliament, triggering the poll.

As the count from a crucial Australian by-election dragged into Sunday, Prime Minister Scott Morrison faced the possibility that his Liberal party may have been too quick to concede a contest that would reduce his administration to a minority government.

She told voters that if she won, she would immediately work to have refugee children removed from Australian detention camps on the Pacific island nation of Nauru.

"The blame for this lies squarely at the feet of anybody who felt it was a good idea to get rid of Malcolm Turnbull", an angry Liberal backbencher Craig Laundy said. "We in the Centre Alliance go through all these motions, make notes on the notice paper and the senators keep up with what they are voting on".

While minor-party lawmakers have indicated they won't support any no-confidence motion in the government that may force an early election, the by-election result shows voters are disillusioned with the infighting in the ruling Liberal- National coalition government that's caused policy paralysis in key areas including energy security and tackling climate change. "I don't think that has played well in Wentworth obviously".

Later in the day however a stack of polling booth votes that had been counted as being for Sharma were discovered to actually be for Phelps, which increased her lead significantly and most analysts now say Phelps will be declared the victor of the by-election.

"But as a party, we will continue to rise again".

"I support the lowering of company tax and compliance costs along all levels of business to attract higher domestic and global investment provided that all companies pay their fair share of tax", Phelps says.

Now he will have to negotiate with independents and the opposition to pass every piece of legislation between now and the next federal election, which is expected in May, though Morrison can call one sooner.

A fake email sent out under Phelps' name claimed she was withdrawing from the race because she had HIV and said her supporters should vote for Sharma.

The result of the much-anticipated by-election means the Morrison government no longer holds majority, meaning there is now a hung parliament.

Media commentators and the Labor opposition asserted that Morrison's statements were aimed only at garnering votes from the large Jewish community within the Wentworth electorate.

"I've done over 20 elections and this is the first time at [8 a.m.] we've had a queue", Liberal Party volunteer Kevin Berry told national broadcaster ABC.

Crossbenchers Bob Katter and Rebekha Sharkie said they would also prefer to see the Government run its full term.

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