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Australia has a long and proud history of democratic freedom, based on the Westminster parliamentary system and English common law.

'Based on' here means democratic freedom based on Westminster parliamentary system and English common law or Australia based on Westminster parliamentary system

and English common law or the History based on Westminster parliamentary system and English common law?

Thanks very much!
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democratic freedom based on Westminster parliamentary system and English common law
Hello,

BTW, I encountered several instances of "based on" used in a quite different grammatical function, as in the following example:

Some companies decided to stop the production based on they had run short of resources.

Is it correct? If so, is it perhaps more informal?
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It's truncated, it means:

Some companies decided to stop the production based on [the fact that] they had run short of resources.
OK, it is truncated. But anyway, in the first sentence it is the "democratic freedom" (a noun) that is "based on" sth, whereas in my example, whether in its truncated or full form, there is no such noun - "based on" refers directly to "decided" (a verb). Therefore I take it as a form of "because", a different grammatical function. Am I right?

Can I use such a truncated form e.g. when speaking at a conference?
>Can I use such a truncated form e.g. when speaking at a conference?

No.
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This 'truncated form' (Some companies decided to stop the production based on they had run short of resources) is just not grammatically right in any situation. 'Because' would work nicely, however-- '...stop the production because they had run short...'.
I'm glad to hear you say that, Mr. M. I was afraid it was another thing in which I thought it was wrong (like very unique) but convention now allows it.
If 'based on they had run' is a convention, I certainly didn't receive my info packet.
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