From Brisbane, Queensland here and it's a similar story here. The company I work for is causing ripples in the Australian pond but as a whole the Australian tech scene is way behind that of the states and other parts of the world due to our tight regulations, expensive Internet connections and slow Internet connection speeds.

For every successful Australian company I can think of, there are thousands not so lucky. Atlassian and Envato are the only two companies I can think of off of the top of my head who have had major success spawning web based businesses in a country as small and somewhat lacking as Australia as Australia is. Melbourne and Sydney are definitely two locations you're most likely to start a successful business in. Good to see Pin tackling payments because in Australia you have two options: Paypal or a propriety expensive bank solution with horrible API.