This document discusses the Australian model of government and its suitability for institutional reform in Shangri-La. It explores the powers of the executive, legislature, and judiciary in Australia, as well as the division of powers between states and the central government. The advantages of this model include accommodation of regional preferences and diversity, closer interaction between leaders and citizens, and the ability to address local issues effectively. However, there are also potential risks, such as the possibility of placing majority wants over community needs and variations in tax systems between states.