Australia's government and opposition are running neck-and-neck in an election which could end with neither side able to form a majority government.

The country's Electoral Commission said the ruling conservative coalition was leading with 71 seats, the centre-left opposition, Labor Party is inching close with 68 seats, and minor parties or independents holding 5 seats.

Counting was less clear in another six seats of the 150 in the House of Representatives, where parties control a majority to form a government. However, Prime Minister Malcolm Turnbull says he is confident of forming a majority.

"Tonight, my friends, I can report that based on the advice I have from the party officials, we can have every confidence that we will form a coalition majority government in the next Parliament," said Malcolm Turnbull, Australian PM.