I'm doing a research essay about 'whether it is possible or necessary for Australia to have multiculturalism policy simultaneously with its citizenship which states that all Australians are asked to pledge loyalty to Australia and its people, to share their democratic beliefs, to respect rights and liberties and to uphold and obey Aus laws.
any comments i'll be greatful for

Well i think it is possible, as you live and express your cultural beliefs in a way that is above line and is accepted by the laws.
its not that difficult to respect Aus multicultural policy, unless you have sth abnormal with your mind and your culture.

I don't think loyalty to your state has to have anything to do with a multiculturalism policy. The US is multicultural and we have the same feelings of allegiance.