I think Melbourne is actually quite lucky in the sense that there are many cheap street lables that offer many different cuts to people with a lot varying shapes, and despite other bits of clothing on their shelves being sub par their denim can be ok.
Besides this my personal favourites for denim available in Melbourne include:
APC- quality, simple and reasonable in cost, though the fit is terrible on me.
Dr.Denim- for $150 i think this is the winner for cheap denim in aus. Its simple, lasts (I've had mine for close to 3 years with regular wear) and the color of the indigo is nice.
Edwin- This used to be a big favourite of mine i have several pairs that i bought when i was working at Dakota on Chapel back in the day, and red line selvage denim for $215 i don't think you can go wrong.
Levis- I used to be a massive LVC fan, i owned about 6 or 7 pairs, all $500 or more, the more normal american LVC i still have but i sold the japanese LVC I've gotten rid of. All in all great quality denim and great stories. However nowadays I no longer have the intrest in denim that i once had, though i still like the cut so I like buying Vintage orange tab 505's for the he cut of the rise and thigh thickness.
Cheap Monday- $90 jeans.
Also, has anyone tried Naked and Famous sold at Harrolds?