Glider
Captain
The population of Sweden was 6.4 million in 1940, and it was able to maintain a competent ordnance industry. I realize that Australia's geographic situation was different, but this could give Australia a better domestic air transport market, and its position in the Commonwealth may permit it easier access to British possessions in Africa and Asia. Note that the idea of industrializing Australia would require a major change in attitude in London, as it was colonial policy to discourage industrialization outside of the British Isles. It was pretty much universal for imperial powers to discourage industry and promote extractive industry and cash crops, vs food production.
Such a change in policy would have had to start well before the start of WW2, probably no later than the first decades of the 20th Century.
Comparing Sweden with Australia is definitely comparing apples and pears. Sweden was easy to defend and compact with both resources easily available and it was technically advanced. Despite these advantages name one piece of equipment that was at least a match for any of the main participants.
Australia would have been very hard pressed to defend its coastline even if they threw everything into it's navy, with 20 years to prepare.