LABOR'S loss in Tasmania and its drubbing in South Australia, suffering large swings in both states, are being seen as the end of the ALP's decade of national dominance.

It was also a warning to Kevin Rudd to concentrate on policy.

The Prime Minister's immediate reaction to the expected ALP loss in Tasmania and the likely close win in South Australia, where Labor ministers lost their seats and leadership divisions broke out, was to pledge to work with all premiers to provide "better services", The Australian reports.

As doubt surrounds the final outcomes in both states, Mr Rudd has put off his meeting with all state and territory leaders for negotiations over his health reforms until April 19 to ensure he can deal with certain leaders.

The likely new Liberal leader in Tasmaina, Will Hodgman, and the leader of the Greens, Nick McKim, both signalled a tougher line on health services than Labor Premier David Bartlett.

"I said on Friday that these two state elections would go down to the wire," Mr Rudd said yesterday. "These two state elections have gone down to the wire.

"Can I also say this: working families want better health and better hospital services and I will be working with any premier from any state, Labor or Liberal, to bring that about."

Mr Hodgman appears certain to be the next Tasmanian premier with Greens support, while Mike Rann is likely to remain as South Australia's Premier although Opposition Leader Isobel Redmond refuses to concede defeat.

Despite federal issues having little impact on the state election campaigns, Tony Abbott declared the swing against the Labor Party as "very bad news for Labor everywhere, including Mr Rudd".

"It suggests to me that the Australian public are getting heartily sick of governments which are more spin than substance," the Opposition Leader said.

"This is Mr Rudd's problem. He's all about political management, not really about making a difference and I think there is a very clear message to Mr Rudd here: get on with the job of making a difference, let's have less bureaucracy, let's have more direct action, that's what the Australian public want."

Liberal party federal director Brian Loughnane said last night that the state swings were the same as swings to the Liberals in the by-elections in Bradfield in Sydney and Higgins in Melbourne last year and it appeared Labor's "highwater mark" had been reached.

Finance Minister Lindsay Tanner rejected any suggestion the state elections had a lesson for federal Labor's style.

"It inevitably does always have some lessons for everybody to pick over and try and work out what they mean for other politicians in Australia," Mr Tanner said on the Nine Network's Sunday program.

"But I don't think there's much in the way of comparison there. Basically spin is a reality in modern politics across the board, whether any of us likes it or not.

"Tony Abbott's treating opposition like some kind of backpacking holiday, where he's out there in the Speedos and on the quad bike and on the surfboard, occasionally dabbling in some off-the-top-the-head policy pronouncements."

Mr Hodgman last night flagged a tougher line with the Rudd government over health reform saying more information was needed from the commonwealth to make "an informed decision".

Mr Bartlett yesterday promised to hand over power to the Liberals if, as he said he expected, the two major parties were tied on 10 seats each, with the Greens winning five seats in the House of Assembly. That outcome would sweep aside 12 years of majority Labor government.

In South Australia, a bitter factional war broke out yesterday after Environment Minister Jay Weatherill vowed to challenge Deputy Premier and Treasurer Kevin Foley for his job.

Mr Weatherill, a longtime leadership aspirant from the Left who is deeply disliked by key members of the powerful Right faction, told The Australian he was determined to secure the party's future after a likely narrow election victory raised questions about Mr Rann taking Labor to the 2014 election.