Coup - Atheist Prime Minister in Australia
I certainly didn't see this coming, so probably best to take the following political analysis with a shaker of salt, but I'll have a go anyway.
Yes, Australia now has an atheist Prime Minister.
The mechanics of it are rather Byzantine, but from what I can gather, the government has decided that it wouldn't be able to win the forthcoming election with the leader they had (Kevin Rudd). The popular deputy Julia Gillard has been chosen instead.
As it turns out, the right wing faction ensured that this would happen, even though Gillard is nominally soft left.
http://www.mamamia.com.au/weblog/2010/06/julia-gillard-australias-first-female-pm.html gives some more detail.
What this means for theocracy and censorship is anyone's guess. It shows that being an atheist is not a problem, but it also shows that all that does matter is getting enough votes. If that means an atheist PM courting the religious, then so be it. We will see.