So I woke up early this morning and because of the rumors I had been hearing I opened up itunes to see if the australia store was in fact being launched today.
To my surprise it was available so I went and created an account and downloaded a track or two. Prices are at $1.69 per track, which is a bit steep. Singles are a bit over $6 which is also expensive. EPs are about $11.49. Albums are $16.99. Not the exact price range I'd like and a bit too close to the cost of a CD from a store, but it'll be better for the one off song purchases.
After spend a little time looking around I went to see if there was any noise about it from apple or any other Australian media, but it seems they may be waiting until after the apple event to publicly announce it's availability.