I travel domestic and also support small businesses at home by buying coffee and lunches out and so forth and I believe a lot of older Australians do travel at home.
If you don't have tons of cash though you will find domestic travel is priced for the GBP/EUR/USD traveler, look how much an average night at a half decent hotel is in Sydney/Melbourne on a weekend or a one way flight to Perth.
The other problem is, if you go big city it is largely the same experience across the country, same shops, same places to eat etc.
Domestic Travel is not really designed or marketed for the average Australian, it is the same as how Asia (BKK/SGN/DPS etc) is geared for us and not locals just more extreme, with cheaper flights, cheaper accom etc.
That all said I highly recommend visiting Tasmania and getting out of the city.
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