According to ANZ Research Team, Australia’s federal election has proven too close to call, and there is the real prospect of a hung parliament.Key QuotesThe Australian Federal election held over the weekend has delivered the real prospect of a hung parliament, with the ruling Liberal/National Coalition (LNP) losing a large number of seats to the Labor Party (ALP). With 78% percent of the vote counted, it is now uncertain whether the LNP can win the 76 seats required to form a majority government. On current counting the LNP has 67 seats, the ALP has 71, minor parties and independents 5 seats, with 7 seats in doubt.This is likely to go down to the wire, with a clear result unlikely until close to the end of the week. For the Senate, at this stage it looks as though whichever party forms government will have to deal with a particularly unwieldy cross-bench, given that an even larger number of seats look likely to go to the minor parties and independents. The result in the Senate is unlikely to be clear for some weeks. In the near-term, increased uncertainty around the political outlook is likely to weigh on both household and business confidence. Further out, a minority government and/or an unmanageable Senate will make it difficult to pass legislation, which could mean a delay of the return to budget surplus and possibly further speculation about the AAA credit rating.