Austria despises the Karađorđevićs since 1903 and doesn't mind their fall.
Aleksandar II is assassinated by the end of the year, his child is escaped out of the country and the minister cabinet resigns to a provisional republican government.In 1925, inspired by the British revolution, popular protests take place again, while the Serbian military plots against the monarch, forming a secret society opposing the White Hand and choosing to back the republican revolution in hopes that it will be easier to control.Though it offers initial stabilisation, it only worsens the situation in the long term, and the mood turns against the monarchy. Faced with overwhelming disorder, Aleksandar II establishes the Royal Dictatorship nine years earlier, in 1920.
The situation in Serbia is even worse than OTL, socialists are empowered further by the French revolution and the government does not have the boost of prestige from winning the war and uniting Yugoslavia.
Petar I abdicates over the terms and Aleksandar II takes the throne. The Karađorđević monarchy is begrudgingly kept, but is forced to appoint an Austrophilic government. Macedonia and Nis are annexed into Bulgaria, Serbia is united with Montenegro as a small compensation, but loses the coast, the army is limited to a meager number, heavy war reparations are imposed and a free-trade agreement with the Empire ensures their economic dominance. The Serbian government in exile finally agrees to negotiate a peace when the tides of the war turn to the Central Powers, and a punitive Treaty of Wartholz is signed. This position is endorsed by Germany, who had proposed a unified Serbian-Montenegrin client state of Austria since 1915. Instead, the Ministry of Foreign Affairs takes charge in the planning of peace treaties, aiming for a nominally independent Serbia after the war. 
By 1918, the annexationist tendencies in Austria-Hungary had largely passed and their main figures such as Franz Conrad von Hötzendorf and István Tisza had been sidelined.
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