The Greens are distancing themselves from the ALP.
Does this mean we will end up with an early election?
I highly doubt it.
I think it will help both parties. Realistically they'll both still preference each other and The Greens are always going to support Labor over the Coalition regardless of how much the relationship breaks down.
By distancing themselves from Labor, the Greens appease the more left voters who think Labor is supporting miners and pillaging the environment.
It also helps Labor keep the more centrist/conservative Labor voters who think the Greens are a bunch of radical nutjobs.
Realistically I think Labor can't win this election unless something dramatic happens. I think given the plunging popularity of Gillard there is a real chance Rudd will be leader again prior to the election but even then I think Labor have ruined their chances.
The only other hope for Labor is that Tony Abbott does something mindblowingly ridiculous that alienates a lot of voters. He'd probably need to get in a bar fight with a pregnant lady or something completely outrageous though. Merely making terrible comments about women or any other group won't be enough.