Depends on how you look at it. I did research for half of it (4 weeks) and will be starting 4 weeks at a radiology clinic coming up soon. It's a government regulation, not the school.
If you have a problem with being treated differently because you are an American instead of a regular international student, then UQ-O isn't for you. It's a constant pain. I had particular trouble getting a rural rotation for the end of year electives. I opted for the aforementioned two instead.
You actually come out having about 3 weeks vacation as an Ochsner student, but unless you can plan it right, the 3 weeks will be spread apart. Makes life difficult, but that's just UQ for you.
Funny enough, I just met some non-med UQ staff over this Christmas break. It turns out that the med school is even starting to develop a bad reputation within the school for riding the coat-tails of the UQ name, and it's starting to feel the repercussions of it with regard to the quality of the students that are going through it.
My 2 cents after finishing my first year; go somewhere else in the States if you can. It's not worth the trouble and frustration dealing with the school administration at UQ.
I'm sure people will flame me for this, but I'm not a fan of the program. At the price they are charging the incoming students, it's really not worth it. Tuition is something like 90k AUD for the incoming class. Absolutely ridiculous.
Edit: Go read the other threads about the school. There's a ton of debate on if it is worth it.