So much of Australian land is marginal at best, moving away from services, friends etc, to have a dirt farm seems like a crappy option. Lack of access to services etc. due to geographical isolation is a major factor in social disadvantage. Providing access to services to homesteaders would be very important, otherwise it would be a really unattractive option.
There is probably some agricultural land that is under-utilised that could be put to better use by being subdivided and used for homesteading type arrangements.
The vacant land around where I live is either dam catchment, polluted, national park, or military base, all of which I don’t think would be good to parcel out. I live relatively close to Sydney, so I may not have a good idea of what land is available in more remote locations though.