With a deadlocked election results and a prospect of no definite government in place for a few more days, CommSec said that Australia may be in for some overhauls which could render an uncertain market conditions, temper the ambitious NBN project and finally seal the demise of the polarising mining tax.

CommSec economist Savanth Sebastian said that investors have no recourse for now but to wait for developments as the uncertain results of the federal election put further questions on the possibility of the mining tax not seeing actual implementation ever.

A new government would not be formed until a few more days and three independent MPs were in a surprising position to determine if the Labor Party would retain government power or the coalition would gain rule after the 2007 sweeping win of the ruling party.

Mr Sebastian said that the uncertain environment seemed to have benefitted the mining industry as BHP Billiton and Rio Tinto shares both inched forward by one percent with the looming possibility that the proposed mining tax could be dumped.

He noted too that due the unpredictable situation, trading on the market were relatively light which could be pointing to investors' concerns that the impasse must be resolved quickly.

And that uncertainty would only get worst once the effect of the developments in the US and global markets is amplified in the local market environment, prompting Me Sebastian to suggest that, "it's in the best interests of the independents to sort something out quickly, rather than drag it out."

He reminded that investors and the markets as well, were closely monitoring the situation and their next moves would greatly depend on the negotiations between the independent MPs and whoever would lead the next government.

CommSec chief economist Craig James agreed that the uncertain election results were not helping the economic environment and for now, currency investors would opt to take the cautious approach and wait for the outcome to be more defined in the days to come.

Many economists said that the Australia dollar would attract more buyers owing to the country's positive standings as the local currency quickly recovered against the US dollar after retreating during the morning trade.

As an immediate aftermath, Mr James said that the mining tax would eventually be ditched while the Labor-sponsored broadband project would proceed as he noted that a minority Australian government would be the least concern of foreign investors as such developments have been common on many countries.