Senate, yes... unfortunately too much so while they are allowed vote-swapping, with people getting elected with just 0.2% of the people wanting them as Senators. Hardly a representation of the people that a Democracy is supposed to be.
As for the Lower house, as noted by Raider, there aren't any people or parties that have a substantial or reasonable range of policies that you'd want to have running the government.
Greens have a place as part of a government, but you wouldn't want them running the government with their more radical ideas and putting the brakes on Tasmania's growth when they were in power there as a State government.
Palmer could have been an alternative if he wasn't in politics to better his own business interests... and some of his crazy stunts and ideas would destroy the economy and country.
Democrats used to be an alternative, but lost their independent identity to voters when they got into bed with Labor in the 90s.
A lot of the independents are more reliable and ethical than the two major parties, but they aren't a party, nor do most want to start one... so until we get an organisation that has policies across all departments and a constitution that puts the people before personal financial interests, the majority of people feel trapped between the political tennis match of alternating between Labor and Liberal, with more people voting a party out than voting a party in now (we are more inclined to vote against things than show support for policies... which leaves us as a people with a leadership that we don't really trust, endorse or even want).