The 38th Cygnian federal election was held on 7 December 1940 to elect the 300 members of the 38th Cygnian House of Representatives. The election resulted in a hung congress, with the governing Unionist Party winning 149 seats — two seats short of a majority. Labour won 143 seats, and Lang Labour won 6. The remaining two seats were held by independents Arthur Coles and Alexander Wilson, who held the balance of power. The incumbent government under Earle Page was able to remain in power through a confidence and supply agreement with the independents, thereby allowing Chancellor Page to begin his second term. However, the Page Government fell less than a year after its inauguration, when Lang Labour rejoined the main Labour Party, and the independents crossed the floor on the Unionists' budget.