Ms Gillard said the Queen should be Australia's final monarch, despite the nation's "deep affection" for her.
"What I would like to see as prime minister is that we work our way through to an agreement on a model for the republic," she told reporters in Townsville.
"I think the appropriate time for this nation to move to be a republic is when we see the monarch change.
"Obviously I'm hoping for Queen Elizabeth that she lives a long and happy life, and having watched her mother I think there's every chance that she will."