MELBOURNE: Australian Prime Minister Julia Gillard Sunday reassured voters she would deliver "stable and effective" government as parties try to cobble a coalition government after inconclusive elections.

Gillard laid out her claim to remain as leader, saying her Labor party had won the popular vote in Saturday`s polls despite an angry backlash which left Australia facing its first hung parliament in 70 years.

"Australia is one of the strongest democracies in the world," Gillard told a press conference.

"We have robust democratic institutions and processes, and as prime minister I will continue to provide stable and effective government in accordance with our democratic process while the final votes are counted in this election."

She added: "There`s no uncertainty over the continuity of stable government over this period."

With about 75 percent of ballots counted, Gillard`s Labor had 50.7 percent of votes against 49.3 percent for the opposition coalition if minor parties are stripped from the figures, according to the official tally.

"It now appears clear that Labor has won the two-party vote," Gillard said, adding that she had spoken to the handful of Greens and independent MPs whose support is needed to gain a parliamentary majority.

"It`s my intention to negotiate in good faith an effective agreement to form government," she said.

As counting continued, Labor had secured 70 seats and the opposition 72, with both set to fall short of the 76 needed for an outright majority, according to public broadcaster ABC.

BDST: 11:40 HRS, August 22, 2010