What do you think and would it qualify? Micro-State because its a principality and one of the only - closest examples to a proper you could find in the west or atleast commonwealth.
They have their own passport, flag/national anthem, rules/laws, and are recognized as a principality inside the commonwealth by the Queen herself. The principality exists inside but independently of Australia in a similar fashion to Luxembourg.
It is ruled/governed by 'HRH Prince Leonard Hon Commissioner in Chief', covering 75 square km in area,
consisting of some 18,500 acres of land.
Their website: http://principality-hutt-river.com/