One way of diversifying Australia's economy is to do the obvious. Add value. We have about 6% unemployment at the moment and coupled with a higher inflation target, we might just be able to solve this problem and possibly many more. With Australia's resources, we have to be smart in the way we use our natural advantage.For example, when the dollar is low we should export and when the dollar is high, we should "export" to the domestic environment.
Just a thought.