The Labor minority government has shored up its numbers in parliament, giving it more firepower in the lower house where it will no longer need the total support of all the key four independents.
The shift in the federal government's favour comes after Labor speaker Harry Jenkins resigned, paving the way for outgoing Liberal National Party member Peter Slipper to step up to the job, taking his coalition vote with him.
It means Labor will have more room to breathe in 2012 and is less likely to be held over a political barrel by an independent MP, like Tasmania's Andrew Wilkie, threatening to withdraw support and let the government fall unless certain policies are pursued.
A clearly enraged Opposition Leader Tony Abbott said the government should have provided the new speaker and accused Prime Minister Julia Gillard of sacrificing a honourable man to shore up her government.
"This is a government in crisis with a prime minister far more interested in her own survival than in the welfare of the nation," Mr Abbott told parliament during a censure motion.
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Mr Jenkins shocked parliament after telling Ms Gillard of his intention to resign at 7.30am (AEDT) on Thursday - the final day of the parliamentary year and the fourth anniversary of Labor in power - to sit on the back bench.
Mr Jenkins, who has been in the role since early 2008, said he had grown "frustrated" by being unable to take part in policy and parliamentary debate.
The prime minister swung into action, telling the crossbenchers on whom she relies for power of the decision while frontbencher Anthony Albanese sounded out Mr Slipper on standing for the speakership.
Mr Albanese had been instrumental after the 2010 election in securing the deputy speaker role for the embattled Queensland LNP MP, who angered the coalition by beating their nominee Bruce Scott for the job.
The Labor caucus endorsed Mr Slipper's nomination and the parliament unanimously elected him, despite the coalition's outrage.
Mr Abbott, in launching the censure motion against Ms Gillard which subsequently failed, said "the Sussex Street (NSW Labor headquarters) death squads" were responsible for the resignation of Mr Jenkins just as they ended Kevin Rudd's leadership in June 2010.
Ms Gillard rejected the claim, saying: "What we've heard from the opposition today is typical of every opposition contribution, full of abuse, full of bluster, full of conspiracy theories."
However, Labor now has a two-vote buffer - it adds Mr Jenkins' vote while Mr Slipper takes his to the cross benches - meaning the government may not need to deliver in full on the poker machine reforms demanded by Mr Wilkie to tackle problem gambling in exchange for his support.
Labor will also be in a stronger position to field some of the demands of the other independents and Greens MP.
It is understood Ms Gillard has individually reassured each of the crossbenchers she will deliver on promises made to them after the 2010 election. But 2012 may be a whole new matter.
Mr Wilkie believes the prime minister would "work in good faith" towards legislating poker machine reforms by mid-2012.
"Of course, it is not what it was - the government does now have a two-seat buffer," he said.
Fellow independent Tony Windsor does not expect much to change, but he acknowledges there's "a bit more fat in the game in terms of insurance" for Labor.
As well, Labor concerns about potentially losing the seat of NSW MP Craig Thomson, who is facing a police probe into the use of his credit cards when he was a union boss, have also eased.
Mr Albanese said it was "clear to everyone" the LNP in Queensland, which has a tense relationship with the member for Fisher, was hounding Mr Slipper out of the party.
Queensland LNP president Bruce McIver believed the Speaker deal was stitched up by former Labor leader Kevin Rudd, who last week visited Mr Slipper in his Queensland seat and attended the MP's wedding five years ago.
LNP director Michael O'Dwyer, who met with Mr McIver and other executive members on Thursday to discuss allegations of "gross disloyalty" against Mr Slipper, said it appeared the now independent's actions were "premeditated and in train for an extensive period of time".
