IMO your list of problems is evidence that we need a new approach to not alone politics but to the whole of Government.
We have to decide on whether to retain the Canberra centric form of Government or would the general good be better served by deligating more power and responsibility to States and Muni Governments
Liberal democracy is premised on the individual (not the group) and from there we get inalienable individual rights/universal human rights and the right to associate.
Other forms of political philosophy start with the group (premise we are social animals) and regard the individual as the product of society.
IMO before formulating any social or economic policies it is imperative to be clear on where one's basic values/philosophy springs from.
Both the French and the US revolutions focused on the individual but over the centuries the Liberty, Equality and Fraternity has been eclipsed by what is deemed more efficient principles.
For example Equality has been diluted to a half assed notion of "equal opportunity" and equality before the law but we all know that that's a myth . While we have tax free inheritance rights and such a wide wealth gap there is slim chance the the individual will ever be treated as equal whether that is before the law or equal opportunity
There seems too be a consistent cultural trend here: -Slavery -Master & Serf -Capitalists & Workers
So one has to ask the question why pay lip service to Liberal Democracy when in fact we don't practice it. Socialism has the same snag, IMO.
At present we have a dogs dinner called the Welfare State where as you say, there are mounting problems and no real enduring solutions.
We have had 8 years of conservative Government where the solution seemed to have bee just run the Welfare State on the Credit Card and this Government is simply doing ditto.
This year we're doling out over $5 Billion of foreign aid and charging it to the national Credit Card while our private debt has just topped $9 Trillion and our combined Governments debt is fast approaching 100% of GDP
