I really can't see things improving in terms of funding for visual astronomy. Basically the Government doesn't really give a cracker for astronomy or astrophysics since it doesn't really translate into any $$$ at the other end. They would rather fund research that ends up with some kind of tangible product or cost-saving breakthru (like in medicine etc.) or something we can export for $$$.
As a country we will have to struggle on - perhaps by concentrating on 'niches' where we already have significant skills and equipment (albeit most of our stuff is dated & small scale) and try to maximise our usefulness in the global scientific community that way.
The only real way of significantly improving things is by having lots of influence in Govt. circles & voter pressure. If everybody in Australia was interested in astronomy we'd be right mate! The whole thing is symptomatic of the decline in interest towards science in general - which has been happening quietly over a long period of time. Fixing it will also take a long time - starting with generating more interest at school level i.e. with our kids.
A quicker way, of course, would be for some genius out there to come up with an amazing breakthru, perhaps a Nobel or two? That might stir up some interest... How 'bout it, any budding Einsteins help us out here? I'd volunteer, but I'd be as useful as an ashtray on a motorbike hehe...