We clearly need a market solution. Competitive passports from private vendors fix will this problem.
The good companies will correctly recognise that paying for a passport is difficult, so they'll respect us by providing passport-as-a-service instead. Small monthly payments are easier for the average Aussie to approach and many are so used to them that upfront payment might seem like a scam anyway.
To protect your privacy and security your passport may include third party pages from trusted organisations.
The government should provide a website to compare all of the passport providers, to make sure that Australians are finding the best deal that suits their particular needs. And don't forget that every Australian does have different travel needs, shorter length passports would increase affordability to help the average joe. Of course if limits are breached it will inconvenience the vendor, so reasonable provisions will need to be made to assist them if this occurs.