Locus, the news magazine of the sf and fantasy genres, has released its annual recommended reading lists for works published in 2005.
Australian works on the list include:
Novel
Godplayers, Damien Broderick
First Novel
Magic or Madness, Justine Larbalestier
Spotted Lily, Anna Tambour
Young Adult
Midnighters Vol 2: Touching Darkness, Scott Westerfeld
Peeps, Scott Westerfeld
Collection
Across the Wall, Garth Nix
Anthology
Nebula Awards Showcase 2005, Jack Dann
Fantasy: The Best of 2004, Karen Haber & Jonathan Strahan
Science Fiction: The Best of 2004, Karen Haber & Jonathan Strahan
Best Short Novels 2005, Jonathan Strahan
Short Stories
"Matricide", Lucy Sussex
If I've missed anyone off the list, my apologies, write and let me know and I'll update this entry.
[Update: just fixing Scott Westerfeld's name, and adding Anna Tambour to the First Novel list.]