The Foreign Minister Alexander Downer has welcomed the designation of a new Prime Minister in Iraq, saying it's a big step forward for democracy in the country.
Iraq's president has formally designated Shi'ite politician Jawad Al-Maliki as prime minister to form a new government.
Mr Al-Maliki now faces the daunting task of forming the first full-term post- Saddam Hussein government within 30 days.
Mr Downer says although a lot of work still lies ahead, the latest developments are a positive sign.
And the foreign minister says a more stable political climate should help to reduce the level of unrest and the general threat posed by terrorism in Iraq.