Clive Palmer has finished only seven votes ahead of his opponent in the federal seat of Fairfax, triggering a recount of every vote.
The Sunshine Coast electorate is the last lower house seat in the country awaiting a definitive result following the September 7 election.
Mr Palmer originally finished with 36 more votes than LNP candidate Ted O'Brien.
A recount of the distribution of preferences found the margin was much more narrower.
Margins of less than 100 trigger a recount.
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The Australian Electoral Commission (AEC) says more than 89,000 votes will have to be recounted, starting on Thursday morning.
Mr Palmer says the seesawing count in Fairfax shows Australia's voting system is a farce and candidates may have been wrongly catapulted into parliament.
"It shows what is wrong with the system when the AEC is so unsure about what is happening in Fairfax they have to send two senior apparatchiks from Canberra to oversee counting," Mr Palmer said in a statement.
"We continue to see different results from this unfair and outdated system, which makes a mockery of the democratic process.
"How many members of parliament are currently in Canberra who shouldn't be there? You simply wouldn't know with the system the way it is at the moment."
Since polling day, Mr Palmer has repeatedly called for a full review of Australia's voting system.
