If I buy a Sim free iPhone in the UK will I be abel to use it on PAYG in Australia?

If I buy a Sim free iPhone in the UK will I be abel to use it on PAYG in Australia? Or will in need jailbreaking? And what does this even mean?!
Also, I'll still have a UK SIM (vodafone) that I'll want to check from time to time - will this work?
thanks

The iPhone4 and 4S use a microsim about half the size of the normal sim
You would have to get replacements for your old sims to use a iPhone4/4S
and no unlocked is unlocked will work anywhere with a GSM sim
people use jailbreaking to get round not having an unlocked iPhone
Go to an UK Apple Store
you can reserve the night before online so you don't have a wasted journey
http://www.apple.com/uk/retail/iphone/
UK Apple stores only sell unlocked iPhones
They will sell you one with a contract but you will have to go through a contract sign up process etc etc so there is no scope for error

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