At 1615 AEST, the benchmark S&P/ASX200 index was down 47.7 points, or 1.08 per cent, at 4,381.3, while the broader All Ordinaries index was down 42.1 points, or 0.94 per cent, at 4,418.4.
On the Sydney Futures Exchange, the September share price index contract was 48 points lower at 4,363 on volume of 26,612 contracts.
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CMC Markets head of trading James Foulsham said the market was "in limbo" as negotiations continued between independent members of parliament and the major political parties to secure an election outcome.
"We haven't seen the momentum that was hoped for in some of the mining stocks based on the fact that the mining tax is potentially going to get abolished," he said.
"I think everyone was hoping for a bit more of a kick than we've had out of that."
BHP Billiton was sold off ahead of its annual profit announcement on Wednesday, closing down 57 cents, or 1.5 per cent, at $37.54.ative said: "Until now dealers would graffiti our (car) numbers on walls or print insulting slogans on sweatshirts, but this is a bizarre variation."
