Economist Warren Hogan said a hung Parliament would be a terrible outcome from the   July 2 election because it would unsettle the markets and make it more difficult to attract investment. 
While the major political parties say internal polling has the Coalition on track for a modest win and bookies have clear odds on a Coalition victory, Labor has far from given up. Both parties are keen to avoid a hung Parliament.
Labor reiterated on Thursday it would rather stay in opposition than ever again govern in coalition with the Greens or any other minor party or independent. The government continued its scare campaign about the prospect of a Labor-Green-Independent alliance. Mr Hogan, the former ANZ chief economist who is backing the Turnbull government, said a hung Parliament would be "really bad".
"That is going to cause some real problems in the short term anyway for markets and potentially in the long term for us to try and attract capital if there is uncertainty about the functioning of the government," he said.
Mr Hogan criticised Labor's policy agenda, singling out its admission last week that deficits under Labor would be larger over the next four years before consolidating rapidly in the out years. "I think you will start to see a few question marks start to be raised and international investors will certainly be watching the new treasurer [Chris] Bowen closely over those first few months," he said.