I feel its because of Australia's relative location with the world, as well as the culture not being really receptive to Europe/Japan/USA fashion. Most of the good stuff are unwilling to be made available here, higher cost, very very niche market, especially in Mens wear, I mean seriously not to bad-mouth Aussie men, but alot of them still wash their face with soap...they wear sweats and trackpants to uni...its really laid back, it is more of a comfy thing, even the fashion magazines for menswear caters to such a crowd where they are basically running graphic tees, jeans, blazers, thongs and really that look is dead...really what can there be expected of male fashion...hence I attribute it to cultural fashion. Because of that male international fashion here is unrealistically expensive, not only is it expensive, it is LATE...very late, as it caters to a very small crowd, the majority are unwilling to spend, even international designer discount shops stock the more graphic stuff, not to say its a bad thing, but creativity is just not a cutural trait when it comes to fashion.
Most of the local designers thats highly rated like Josh Goot are basically very remisnicient of old style Chalayan and Helmut Lang, it is more of a street style here, and it can be seen in the style of jeans, think Tsubi, the old Vicious Threads, Bettina Liano etc. Alot of the womenswear designers are copys, and I really think they are capable of much more, but really because of the market, I do not think that many will survive, its more for catering to what the market needs and wants.
I do not think its a patriotic thing, it is simply a cultural response, graphic tees and skinny jeans ARE what Australians call fashion, not necessarily a patriotic obsession with the labels, it is simply the mindset, and until it changes and I doubt it ever will, creative fashion will not be the mainstream.
As to shoes, it is horrible, for all the leather and fur available here, the standard of male shoes is absymal. The high end-retailers do import them, but once again, few models, generally stick to the conservative and very niche, hence very expensive. I do ALL my shopping online and alter it to fit me. Im not saying that Australia has no prospect with fashion and creativity, I just feel that they are capable of alot more than what they are showing, especially in menswear and mens accessories.