( CNN ) -- Australia Prime Minister Julia Gillard said Tuesday she believes Australia should become a republic after Queen Elizabeth II dies . Gillard said the country has a `` deep affection '' for Queen Elizabeth , but that she favors moving Australia toward a republic . `` What I would like to see as prime minister is that we work our way through to an agreement on a model for the republic , but I think that the appropriate time for this nation to move to being a republic is when we see the monarch change , '' Gillard said at a news conference . `` Obviously I 'm hoping for Queen Elizabeth that she lives a long and happy life , and having watched her mother I think there 's every chance that she will live a long and happy life , but I think that 's probably the appropriate point for a transition to a republic . '' Australia is currently a constitutional monarchy with the British monarch as its head of state . Gillard made the comments on the campaign trail ahead of Saturday 's general election , in which she faces a challenge from opposition leader Tony Abbott . Abbott said Tuesday he believes the current system of government is a good one . `` This republican cause has been with us for a long time , but the Australian people have demonstrated themselves to be remarkably attached to institutions that work , '' he said Tuesday . `` I think that our existing constitutional arrangements have worked well in the past . I see no reason whatsoever why they ca n't continue to work well in the future . So while there may very well be further episodes of republicanism in this country , I am far from certain that , at least in our lifetimes , there is likely to be any significant change . '' Abbott , of the Liberal Party , headed Australians for Constitutional Monarchy for two years before entering Parliament . Gillard ousted Kevin Rudd as leader of Australia 's Labor Party , and prime minister , in June . She had been Rudd 's deputy prime minister , but Labor Party members of Parliament voted her into the top job as Rudd 's public approval declined .
NEW : Opposition leader says the country 's current system of government is good . PM Julia Gillard says Queen Elizabeth should be Australia 's last monarch . She wants Australia to become a republic . Comment: