Tourism Australia's ‘Where the bloody hell are you?’ campaign had been banned by Britain's Broadcast Advertising Clearance Centre.
The ban on the $180 million dollar ad campaign on TV last week prompted an urgent flight to London by federal Tourism Minister Fran Bailey who amid a blaze of priceless publicity complained the Poms had lost their sense of humour.
Announcing the lifting of the ban Ms Bailey said "I am pleased that common sense prevailed and the regulators realised the campaign was intended to be cheeky, friendly and very Australian."
Ms Bailey had put forward three arguments that "bloody" had been used in British television advertisements twice before; that Tourism Australia research in Britain found "bloody" was not regarded as offensive; and that there had been no complaints in those countries that had already screened the ads.
"My faith in the British sense of humour has been restored. It was well worth the fight, especially given the half a million jobs that tourism already creates and with the potential for many more," Ms Bailey said.
"Now it's time to get on with the campaign and get more British tourists to visit Australia!," she said.
The ban had applied only to television advertisements. Print, online and cinema campaigns were free to use "bloody".
The tourism campaign was launched three weeks ago and features natural Australian icons such as beaches, the Great Barrier Reef, the outback, Sydney Harbour and Uluru.
The ads end with bikini-clad model Laura Bingle, who accompanied Ms Bailey to London, saying: "We've saved you a spot on the beach - so where the bloody hell are you?"
The campaign will now be run in its entirety on television, as well as in cinemas, in print and on the internet.