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Should Australia become a republic?
The Head of State should be an Australian, not a foreigner or dual-citizen, to avoid political conflicts of interest.
If Australia and the UK became political or military opponents in the future, having the same head of state, who's primary responsibility is Britain, puts Australia at a severe disadvantage.
Theoretically an Australian could become monarch of England by marrying into the royal family.
In practice, the Head of State is the
, who is and often has been an Australian citizen.
Technically the monarch is Australian. While not a citizen of any nation, the Queen of England is equally the Queen of Australia, the Queen of Canada, etc. (Note, this does not affect possible conflicts of interest)