A large federally-funded quarantine facility on the outskirts of each state capital would fulfill the need for quarantine that can operate at capacity, whilst limiting transmission. It's not rocket science, but unfortunately it is politics.
The past couple of years have caused me to really become ashamed of being Australian. Being part of an increasingly globalised society, I found the government's blanket dictat of "Australians come home now" to belong to another era. With 4% of its population living in other countries, one would assume they would try harder to not alienate their diaspora.