Ahead of schedule, iTunes now provides an Australia link in the iTunes Music Store.
Songs are being offered for $1.69 and videos for $3.39 (AUS). Rumors for iTunes Australia have been long whispered. Cited reasons for the long delay have included resistance from music labels. According to the most recent reports, Sony BMG has not signed on to the iTunes Australia launch.
Official launch is expected on October 25th at a media conference in Sydney.
Update: Official press release.