Yey the liberals are back in Eastern Australia state government! This can't be great news for Gillard's administration.
Not entirely...
It actually makes life much easier for Gillard - when Rudd couldn't get things done through the states - he had a hard time blaming anyone since they're kind of on the same team.
Opposition tends to make PM's lives easier, rather than harder, the key, is how you deal with it.
For example, did Rudd suffer a little with the Opposition federally preventing the passing of his cap and trade Bill? Yes... but when did he commit political suicide... when he gave up on the cap and trade Bill... everyone, almost to a fault says Rudd would a) still be PM and b) would have won re-election by a much bigger margin than Gillard did, had he stuck to his guns.
Howard was at his best, when he had nothing but wall-to-wall Labor state governments to deal with.
Having a few more obstructionist Coalition state governments around the table could make Gillard's life much easier.