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Albanese made the comments before lighting a beacon in the capital, Canberra, to mark the queen's seven decades on the throne.
Elizabeth's Platinum Jubilee is being celebrated in Britain and throughout the Commonwealth over several days. Albanese said his country's relationship with the queen had changed over time.
The British monarch remains Australia's official head of state, although these days the role is considered primarily ceremonial. As well as lighting beacons, Australia marked the jubilee by illuminating landmarks in royal purple.
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