I can't speak for Europe, but I honestly wonder how many of those 'reports' in the US about Australia were ultimately the result of Chinese propaganda efforts. China is doing everything it can to split Australia and the US as allies, and spreading a narrative in the United States that Australia has lost its way is in their interests.
A couple of states in Australia, as I've said, embraced an approaches to COVID that were extremist - the two most left wing states in the country. The other parts of the country did not. Nor did the Federal government, except arguably on some aspects of vaccination, but even there that happened because of the influence of those two extremist states. But American media from everything I could see, seem to be presenting those two states as the norm in Australia, rather than as the exceptions.
OTOH,I,like many Americans,don't understand the details of the relationship that your states have with your Federal government. As you probably know some of our left wing states routinely pass gun laws which are clearly unconstitutional...knowing that it would take years for the Federal courts to overturn them.Perhaps the same is true Down Under...your states showing contempt for the national Constitution in various ways.
I'm sure it wouldn't surprise you to learn that the typical American doesn't know much about Australia apart from Crocodile Dundee. Hell,we don't even know much about Canada! There are many videos showing Americans being arrested in Canada for firearms and you hear them say "but I have a license to carry in Texas".