The only way to get rid of state governements would be through referendum in each state. I believe that considering the history of referendums that there is absolutely no chance of it succeeding in any of the smaller states. They would consider it (or at least have a strong argument put to them) that the more populated (and hence stronger) states would always only consider their regional interest over the less powerful regions.
South Australians would worry that Victoria and NSW would take all the River Murray water for themselves. West Australians would be concerned that all their mineral wealth would just go to support the eastern states. Tasmania would be worried that they couldn't do anything without the permission of the rest of Australia. The Queensland canetoads and NSW cockroaches wouldn't be able to play state of origin rugby league
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