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World War II
The Japanese held Australia in 1941 under control of their cultural and influence, most notably Shintoism.
The Russians and Americans work together to help free Australia from Japanese control and Australia is liberated and split into two countries of Australia. Northwest and Southeast across the diagonal line.
Northwest Australia becomes Communist on behalf of the Union of the Soviet Socialist of Russia and takes the island of New Guinea.
Southeast Australia becomes Capitalist on behalf of the United States of America.
The Main Thing (the title says so)
(DPRK and Northwest Australia v New Zealand and Southeast Australia)
Berserks of the Kiwi Napoleon
In 1949, the Northwest makes their invasion through the diagonal line by the order of Stalin and cornered the Southeast Capitalist to the shorelines of Victoria. However in 1951, the Southeast with the support of the US pushes back the Communist back up to the tip of the northern territory and the north-eastern tip of the west thanks to the help of the New Zealanders.
Northwest with the Chinese support regain their lost territories and starts to fight back the Southeast in 1953 after the North Korean victory.
The Sacrifice of the Communist Vietnamese
New Zealand has sent 30,000 Pakeha troops led by 700 Maori warriors and helps supports the Southeast capitalist with ammunition and food supplies by the 170 French modern musketeers and 260 West German volunteers but cannot match the might of the North Vietnamese supported Aussies in 1960.
The Southeast helps the Americans with the volunteers of West Germany defeated the north Vietnamese in 1965. But in 1971 an American Nuclear Aircraft carrier (USS John Adams) is ambushed by Korean turtle ships in the foggy areas of the great barrier reef and destroyed. The Northwest Communist continue to bombard the Southeast down to South Victoria and southeastern New South Wales, but America is still holding off the Northwest invaders to help avenge the USS John Adams.
The Siege of Melbourne
In 1986 the Northwest with the support of the Chinese and the Koreans take back the city of Sydney and Canberra and New South Wales becomes fully Communist as more than 470,000 New Zealanders died in the 1980's of the Australian War which sums up the total of over one million New Zealanders died violently in the Australian War and for the 170,000 Americans died in total. The French decides to arm the Southeast capitalist of nuclear weapons which resulted to the Hurst-bridge Nuclear Fusion Power Plant opened in 1984 the 'Siege of Melbourne' of one of the most epic last standing moments in this alternate timeline, also the most epic military siege. John Kirwan led his tiny army of 12 New Zealanders leading 2560 Southeastern Aussies against 17,234,900 Northwestern Aussies, 6800 Koreans and 19,870 Chinese.
In December 31 1990 the Hurst-bridge Nuclear Fusion Power Plant explodes turning Melbourne into the Ghost town much like Pripyat in Ukraine and Southeast Australia looks like Tasmania is the sole survivor of this epic warfare after the Australian mainland under control of the northwestern Communist regime thanks to Korea and China after the fall of the USSR.
In 1991, Peoples Independent Confederation of Australia taken control of the Australian Mainland annexes the New Guinea and Tasmania loses their independence and became disputed by two countries who claimed Tasmania is the 'Peoples Independent Confederation of Australia' and the 'Covenant Republic of New Zealand'.
This has turned the tables as New Zealand has nine Special Administrative Regions as Official countries.
(City - Country Administered until year)
Auckland - USA until 2003
Coromandel - Kurdistan until 2009
Tauranga - Vietnam until 2000
Whakatane - Persia until 2011
Gisborne - Canada until 2001
Napier - Carthage until 2002
Whangarei - Palestine until 2006 (overthrown by Israel)
Christchurch - France until 1999
Stewart Island - Russia until 2005
Australia and New Zealand became sporting rivalries mostly Basketball, Rugby and Ice Hockey
Tasmania remained part of both Australia and New Zealand and became the most disputed Island in this alternate timeline much like China never lets go of Taiwan.