Independent federal MPs Tony Windsor and Rob Oakeshott will back Labor giving Prime Minister Julia Gillard the numbers to form government.
Earlier Queensland MP Bob Katter declared his support for the Coalition to form a minority government splitting the support of the three independents.
Mr Katter held a press conference in his office just before 2pm, after originally planning a joint decision with Tony Windsor and Rob Oakeshott at 3pm.
The holding of separate press conferences was an early indication the trio had split.
Mr Windsor announced his decision shortly after 3 pm and said Labor's national broadband policy had been the biggest influence in his decision.
Mr Oakeshott declared his support for Labor a short time later saying that broadband, climate change and education were the key issues for him.
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.
He said the Coalition had done better on eight of the 20 points he had listed to swing his vote - nominating ethanol policy and indigenous affairs and the wild rivers legislation in Queensland as the major differences.
He said he did not know how Mr Windsor and Mr Oakeshott were going to vote.
TASMANIAN WINNERS AND LOSERS, ALL THE REACTION IN THE EXAMINER TOMORROW