It is because the Australian Public is extremely unintelligent.
LCC's work in Europe because people are smart enough to now that they are paying for a bus service from A to B.
Australia had Full service airlines servicing the country from the beginnings of ANA/QF etc until the beginning of this millennium.
THE PUBLIC DO NOT UNDERSTAND THE CONCEPT OF LCC !! (and even some pilots)
Could be a good Idea for the Jet*
suits to maybe educate our uneducated antipodean convict friends