The Australian government has welcomed Fiji's decision to lift its draconian emergency laws but says the military regime must do a lot more to restore democracy.
Fijian Prime Minister Frank Bainimarama has used a televised New Year message to announce that his interim government's Public Emergency Regulations will be lifted on January 7.
Commodore Bainimarama said the lifting of the laws - introduced in April 2009 - would open the way for national consultations on a new constitution, likely to begin next month.
The Australian government's Parliamentary Secretary for Pacific Island Affairs, Richard Marles, says the move is a definite step in the right direction.
"The Public Emergency Regulations have been an oppressive part of the interim regime in Fiji and we've been calling for their removal really since they were instituted," Mr Marles told AAP on Monday.
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WORK TO BE DONE: AUSTRALIA
But Mr Marles said Commodore Bainimarama - who seized power in a 2006 coup - still had a lot of work to do.
"There is a long way to go in restoring democracy to Fiji. We are keen to see how these developments play out," he said.
Mr Marles pointed out the country's media and essential services decrees - which impose strict limits on press and union freedom - remain in place.
Mr Marles said it also remained to be seen whether Commodore Bainimarama would deliver on his pledge to hold elections in 2014.
The Rudd and Gillard Labor governments have maintained a tough line and sanctions against the Fijian regime, despite calls from some commentators for a softer approach.
"As to the effect of our diplomacy - we'll leave that to others to judge," Mr Marles said.
"[But] I think it's been important that the international community has maintained a firm stance in relation to Fiji.
"I think it's particularly important that the Pacific region has maintained its firm stance in relation to Fiji."
Mr Marles called on the regime to ensure the constitutional consultations include voices from across the political spectrum.
Commodore Bainimarama says certain features of the new constitution will be "non-negotiable".
"The constitution must establish a government that is founded on an electoral system that guarantees equal suffrage - a truly democratic system based on the principle of one person, one vote, one value.
"We will not have a system that will classify Fijians based on ethnicity."
Opposition foreign affairs spokeswoman Julie Bishop said she hoped the announcement would prove to be a real step back toward civilian rule.
"We need to see a return to democracy, civilian law, an independent judiciary as soon as possible so we can see some peace and stability in the region," Ms Bishop told Sky News.
