This is a picture of the little suunto compass in the K&M Matchcase from side on showing the inclination tilt of the needle in Australia.
The white sloping down from left to right is the rotating disk of the compass with the needle attached underneath.
Laying flat on the table the needle will drag itself around to point north, but holding it in the hand is enough to cause it to bind and it is not very usable.
Schwert, you might like to point Keith from K&M to this post so he can see for himself what its like.