Yep, most gift shops are full of things made in China (or another country).  Very few are authentically Aussie made.  The biggest irony is that all the Australian souvenirs I've ever seen peddled about in the city or suburb areas are actually run by Chinese/Asian people! Not that I begrudge them making a living it's just ironic that's all! 

The further out you go into the country and you'll find it populated by smaller businesses and real Aussie characters with more authentic works.  Like the guy down my way who we call the chainsaw man because he uses his chainsaw to create wonderful sculptures and figures out of hewn logs.  . . . awesome stuff.