Prime Minister Julia Gillard will use her precarious grip on power to focus on strengthening the economy and education system after forming Australia's first minority federal government in 70 years by the slimmest margin.
She will unveil her front-bench team - which includes a place for deposed prime minister Kevin Rudd - within days after making a deal with two of three rural Independents yesterday.
After 17 days of arduous negotiations, Tony Windsor and Rob Oakeshott announced in a press conference that they would back Labor in exchange for a commitment of $9.9 billion for regional communities and a promise to overhaul parliament's rules from Ms Gillard.
Mr Oakeshott is also considering an offer to join Labor's ministry in regional development.
The country has been in political limbo since the August 21 election failed to produce a clear result.
Ms Gillard secured yesterday the slim majority in the House of Representatives so the Government would survive frivolous no-confidence motions and was guaranteed supply.
The Government now has a one-vote buffer in the lower house, relying on three Independents and the Greens to remain in power.
Ms Gillard's 76 votes come with the backing of the Greens' Adam Bandt and Independents Andrew Wilkie, Mr Oakeshott and Mr Windsor.
Mr Oakeshott and Mr Windsor decided to side with Labor yesterday after the ''third amigo'' - Independent Bob Katter - backed the Coalition.
But Ms Gillard and Opposition Leader Tony Abbott only learned their fates along with the rest of the country during the late afternoon press conference.
Mr Oakeshott said the deciding factors had been the ''raw numbers'' on the floor of parliament, the workability of the Senate, the possibility the Coalition would aim for his seat at the next election and the greater chance of an early poll under an Abbott government.
But he also wanted to ensure he made a ''20-year decision'' that improved regional Australia and met what he called the ''eyes of my children'' test.
And he underlined how fragile the Government could be if it did not deliver on its promises.
''This is not a mandate for any government,'' Mr Oakeshott warned.
The next three years would be ''ugly, but it's going to be beautiful in its ugliness''.
''We are going to have a wow of a time and we are going to absolutely see anything and everything before this Parliament,'' Mr Oakeshott said.
For more on this story, including the reactions of Ms Gillard and Mr Abbott to the news, Ross Peake and Jack Waterford's analysis of the day's events, a timeline and details of the commitments Labor made to seal the deal, see the print edition of today's Canberra Times.