Palmer to block Abbott in Senate

AAP, with a staff reporter

Mining magnate Clive Palmer says his party will block Tony Abbott's policy agenda in the Senate unless there's electoral reform.

Mr Palmer now says he won't win the Queensland seat of Fairfax because the electoral system is corrupt.

The Australian Electoral Commission website has Mr Palmer as the frontrunner in the race for the Sunshine Coast seat, with 51.83 per cent of the vote after preferences.

But the Palmer United Party (PUP) founder says his Liberal National Party rival Ted O'Brien is likely to get over the line by a few hundred votes.

"I'd be highly surprised if I won," he told AAP.

"But there's absolutely no way I will win based voting irregularities and the security of the ballots."

Mr Palmer says if he fails to win Fairfax, two PUP candidates expected to be elected to the Senate will block Tony Abbott's policies unless electoral reform is promised.

"We think it's a corrupt system. Until that's sorted out Abbott won't be getting any legislation through the Senate with our support," Mr Palmer said.

Earlier, Mr Palmer told The Australian Financial Review his party would look at each individual piece of legislation in the Senate on its own merits.

"We won’t be doing blanket deals," he said.

PUP is expected to win two Senate spots: Glenn Lazarus in Queensland and Jacqui Lambie in Tasmania.