I believe the iPhones sold in Canada are locked to Rogers or Fido, so you'll have to jailbreak and unlock it using software. (See our iPhone Modifications forum for more on this - there is a really good stickied thread there describing jailbreaking/unlocking.).
If you can get over to New Zealand while you're in Australia, iPhones are sold factory-unlocked there, albeit at a higher price. Factory-unlocked phones will remain unlocked through any firmware update and you don't need to jailbreak them or do anything special to them at all.
I don't know about the pre-paid plans for the iPhone, if any, in Canada. Hopefully another member can help you with that one.
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