Receptional_Andy - 12:47 pm on Jul 8, 2010 (gmt 0)
Surely if I set up a subdomain australia.widgets.com that should be enough for Google to recognise where my target market is?
In addition to HuskyPup's examples this could just indicate content about Australia - it isn't a safe assumption that it indicates targeting.
Similar things apply to country codes: tv.example.com - country targeting or videos? us.example.com - America, or people coming together? The only reliable solution is a local TLD in the same way that Google itself approaches this.