Independent MP Andrew Wilkie is supporting Labor to retain power, saying he believes Prime Minister Julia Gillard could provide stable and ethical government.
When combined with Greens MP Adam Bandt's decision to also back Labor, it gives Ms Gillard 74 votes in the next House of Representatives compared with the Coalition's 73.
The three regional Independent MPs - Tony Windsor, Rob Oakeshott and Bob Katter - still hold the key votes that will determine which party forms government, although they will not necessarily vote as a bloc.
Mr Wilkie - who made his announcement this afternoon - said he believed Labor was now more likely to have the numbers to keep government.
''I would hope that by deciding fairly early that this would send a signal to the other independents and that they would move as quickly as they can [to make a decision],'' he said.
He had signed a letter of agreement with Ms Gillard, but he would still work constructively with Opposition Leader Tony Abbott if he were to become Prime Minister.
''A future Gillard Labor government will have my vote on matters of supply, further more I will not support any unwarranted no confidence motions brought to bear against a future Labor government,'' he said.
''I would emphasise that my support for a future Gillard Labor Government only extends to the issues of supply and no confidence emotions, and in no way should my support be taken for support for any of their polices. I will approach ... every piece of legislation before the parliament on its merits. And I have made quite clear to Ms Gillard that she shouldn't take my support for granted on any piece of legislation.''
Mr Wilkie had been calling for restrictions on poker machines and help for Royal Hobart Hospital.
He said he had secured an extra $1.8 billion in health and hospitals funding from Ms Gillard. About $340 million of that would go to Royal Hobart Hospital.
He knocked back an offer from Mr Abbott for $1 billion for a new hospital for Tasmania.
Source: The Canberra Times
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