Easier said than done. The state governments all have their offices in capital cities instead of moving outward thanks to the internet making more remotr offices viable.
For example sydney gov could relocate to parramatta, the largest business district outside of sydney city.... this would promote growth away from the capital. So essentially everyone is going to work at a congested city centre and houses over 2 hours drive are not desirable or practical for office workers...

Also 70 percent of the land here is dry or very dry, expensive to make livable.

At the end of the day its purely the government's fault for the shortcomings in this cuntry