That's the iffy part right there. It really all depends on how Australia's distributor is set up.
They could be licensed to use the name, which means they can put it on any old hunk of crap they like, much the same way we see names like Remington and S&W on cheap hunks of crap. If that's the case, then it is up to the Leatherman Representative in Australia to sell the tools and the brand in any way possible, which means that if they could throw in a $2 watch and jack up the price by $50, then they go for it. Of course in the long run they are better off starting with quality pieces. like Victorinox (or rather the US branch, Swiss Army Brands) used to do with Mag Lights.
I am certain Leatherman has more control over what goes on in various markets, but it is entirely possible that Leatherman Australia isn't Leatherman, but an agency contracted to represent Leatherman in that area. In Canada Leatherman is represented by Outdoor Sales Group and Wenger is represented by SwissPeak. If SwissPeak wanted to use the Wenger brand on flashlights or anything else, they have a certain amount of authority to do it.
This might be why we only see Leatherman watches in Australia. Otherwise it seems that if it was a good idea (and why wouldn't it be?) we'd see them here as well.
Def