Is Miley Cyrus and Liam Hemsworth's engagement off?

The rumor mill is again going haywire with articles and sources here and there both confirming and denying rumors of the couple calling off their wedding. The reason--Liam is now in Australia supposedly to get some space from the former Disney star.

The Hunger Games actor showed off his hot beach bod while swimming and playing around with friends in his hometown. The actor was spotted wearing nothing but a rainbow-striped board shorts as he spent some quality time with brother Chris Hemsworth and sister-in-law Elsa Pataky, along with his niece India Rose.

This was during the same time that Miley was seen stepping out of a house party without her 3.5-carat engagement ring and with a different kind of accessory in tow--Liam's friend Paul Khoury. The Can't Be Tamed singer also opted not to wear her diamond ring the day before while heading to the recording studio.

Rumors of the Last Song couple going Splitsville began when Liam was photographed in the backseat of a car with Mad Men actress January Jones, igniting telltales of Liam cheating on his fiancé. It's a bit vague, however, whether this was the real cause of the duo's relationship problems.

Some sources reveal that other issues prevail between the two, such as their careers and Miley's treatment of Liam. "Miley is crazy about Liam, but sometimes doesn't treat him great... She likes things her way and tends to play games. Liam is also a strong person and that's why they often butt heads," a source revealed.

And what does the 20-year-old singer say about all this?

"My new music is gonna shut everyone up," she wrote on Twitter. "Not discussing anything but my music from now on."