If you're wondering what is happening these days in Australian Speculative Fiction then I recommend that you have a look at Ben Peek's review of the short fiction nominees in the 2007 Aurealis Awards.
After an introduction to the awards Peek treats each of the Science Fiction, Fantasy, Horror and Young Adult nominees to a detailed critical examination. He cries off the Children's section as he doesn't feel qualified to review them, and that, in itself, should give you some sense that this bloke takes his work seriously. Now, if we could find someone to do the same for the novels we'd be well covered.