According to The Australian Financial Review, the cabinet decision ensures the Prime Minister can offer solid commitments to the three regional MPs, including reforms to political donations and parliament, in contrast to the Coalition's initial resistance to some of their demands.

But cabinet also resolved to avoid making new spending promises in the independents' own electorates, despite signs that those with the balance of power are determined to ­demand funds for local projects.

Opposition Leader Tony Abbott continued to press his claim that only the Coalition could provide stable government, but he relented yesterday on one of the conditions he had placed on negotiations with independents. He accepted that sensitive information about the cost of his election promises would eventually be made public after the independents were briefed on it.

Treasurer Wayne Swan appeared to give greater ground, however, by refusing to rule out higher tariffs to appease Bob Katter, one of the three regional MPs and a strong ­advocate for protecting rural industry.