Yes, Australia should declare full independence.
No, Australia should keep it's ties with the UK.
I know that many Australians find the Monarchy to be very parochial and not in touch with 'Australian' values. I also recognise the strength of our institutions, particularly the institution of parliamentary democracy, which is the product of a constitutional monarchy. My main argument for the preservation of the monarchy is for the preservation of parliamentary democracy, which is, in my opinion, the best political system that has existed and that currently exists. The ONLY way we can guarantee this system of parliamentary democracy is by retaining the institution of the Monarchy, which leads me to my second point. That is exactly what the Monarchy is - it's an institution. I couldn't care less who is the Monarch or who are the people behind the Monarchy; it's the institution that matters for me. The fact that we have a truly 'neutral' non-partisan Head of State is actually very rare among modern democracies. If we became a Republic, even a parliamentary Republic (i.e. with a ceremonial President), he/she would still play to a certain degree a political role, and this opens the door up on all sorts of issues. For e.g. how much power should the President have? What are his/her powers? How do we elect the President? For how long? All of these issues are important and can significantly, and over time affect the institution of parliamentary democracy. Third: what annoys me the most about many Australians is that we seem to think that we just 'grew' here - that is, we came from nothing. Our current society is the product of hundreds of years gradual social and political change that took place in Britain, and subsequently was transplanted to this continent. We, as a society, have had to do nothing; we haven't fought for our right to be a nation; and frankly, our desire to assert our own identity is actually a 'slap in the face' to the people of Europe who fought and died over the last hundreds of years to shape their own identity. For e.g. France is arguably the oldest nation-state in the world; and it's taken them hundreds of years to get to where they are today. That we, as Australians, can claim to have some legitimate identity is actually insulting to a Frenchman (in my view). We are British, and what we have today is because of Britain. Whether you like it or not.