I don't know that the Oz v US O2 rule is that big an issue in an urgent regulatory sense.
Things that do need fixing urgently...in no set order,
* Medical fees: Take it out of CASA's hands and put it in the DAME's..period.
* ASICs: Pure unadulterated stupidity of Pythonesque proportions...particularly as it effects student pilots but also airports that are effected...Toowoomba as just one example...Grafton another...there are LOTS more
They should ONLY be a requirement at capital city airports such as SY,ML,CB etc.
* Pilot training: There needs to be a way to facilitate experienced pilots who want to 'put something back'. Pilots with a background in training outside of the ab initio/flying school system but that have a great deal of training and checking experience within the broader regulatory framework. The US model is a good one in this respect.
* The ATO system: It needs modifying so schools cannot pick and choose 'easy' ATOs that pass just about anyone...yes it happens
* Airspace: KISS. I would suggest back to the old CTA/OCA system. Rather than CTAF frequencies simply have all aerodromes operating on a (published on charts etc) area fequency basis with a very few basic
mandatory radio calls. CTA would have few classifications...Class C (or B if deemed appropriate at somewhere like SY) and Class D at places like Coffs/BK/MC etc...Class D could be further broken down into 'Radar' D and 'Procedural' D (essentially what GAAP is) if required. Everything else is G with RIS within radar/ads-b coverage.
* User pays: It must be recognised that 'the system' exists only because of the 'big end of town'. I have posted this analogy before...imagine the system the day after every hi cap domestic/international RPT aircraft was grounded and then imagine it the day after every private GA/charter aircraft was grounded. Having recognised that the system requirements are purely driven by hi capacity operators recognise also that GA already contributes more than it costs via sundry indirect taxes, GST etc. As it stands we are being
double taxed in many areas by paying GST on top of govt 'fees' for service...this is an obscenity.