Australia celebrates with the United Kingdom on its ongoing fete that highlights the six-decade rule of Queen Elizabeth II, one of the world's longest serving monarchs.

This according to Prime Minister Julia, also announcing on Tuesday that Australia will give $5.4 million to the Queen Elizabeth Diamond Jubilee Trust that the British government unveiled this week.

The Jubilee Trust, according to British Prime Minister Cameron, will celebrate the royal rule of Queen Elizabeth II by providing grants to charitable institutions.

Former Conservative Prime Minister John Majors has been tapped to supervise the trust's operations, Agence France Presse (AFP) reported Cameron as saying on Monday.

In Australia, Ms Gillard stressed that the nation is happy to be part of a tribute that marks the ascension of the queen, who was catapulted to the throne at a young age of 25.

She also serves as the head of state of Australia, formerly a penal colony of the British Crown.

The relation of the two nations have subjected to a number of tests, with elements in Australia actively campaigning for the country to formally cut its royal ties with Queen Elizabeth and form a republic instead.

Periodically, the movement gains traction especially during official royal visits to Australia but the former colony has largely cultivated strong relationship with its nominal ruler, even formally junking a proposed separation move in a referendum in 1999.

Ms Gillard reaffirmed the solid connection of Australia with the British royalty and emphasised that Queen Elizabeth is loved by her 'subjects' in the country.

This was demonstrated when thousands turned out to welcome the queen during her Australian tour last year though protests and debates also greeted her visit at the same time, which momentarily rekindled negative sentiments by some against the British monarchy.

However, Ms Gillard insisted that Australia, as a whole, is one with the United Kingdom as it marked the 60-year rule of the queen.

In an address before the Parliament, the Prime Minister also underscored that "there's nothing valedictory in our diamond jubilee celebrations, nor should there be."

Ms Gillard said that Australians will be celebrating with UK every step of the way, with the local celebration to be highlighted by the issuance of jubilee stamps and coins to commemorate the event.

Canberra also announced the renaming of a road in the Parliamentary zone to Queen Elizabeth Terrace to signify the nation's reverence for and solidarity with the British monarchy.