I don't know if this is a common practice with Australian companies, but it is a very common practice in the United States of America. I think I see this complaint on a regular basis in the business section of the local newspaper, in which persons seeking employment have been left wondering for weeks, until they politely enquire if the job opportunity is still available, only to find out the position was filled weeks ago.
The conventional wisdom, for those wishing to obtain more experience, is to suggest that the job seeker volunteer for work in a job where the experience may be gained. That is, if you wish to put your education to work, find a small non-profit museum and ask if they could use unpaid assistance for a period of months.
I'm not certain that you would be able to accomplish that, because we don't know your exact circumstances. However, I am curious why you would be told that it's necessary for you to have 'local experience'.
Is this a code word for 'we won't hire you because you don't fit a certain quota'? In the US, employers may wish to hire A. Person. But, A. Person is not a U.S. citizen. The employer is required to hire from local talent. But the employer really wants A. Person. So, the employer inserts an advert in the local newspaper, specifying certain desirable qualifications. These specific desirable qualifications may exist ONLY in A. Person. The advert is tailored for A. Person. So, you apply. You are turned down. The employer can now go and request that a certain type of work visa/permit be issued to A. Person because A. Person is the only qualified candidate.
Even in my own workplace, which is the US Postal Service, internal positions may be tailored to fit a specific individual. These positions are advertised as "Best Qualified", and the only person meeting the qualifications may be the person for whom the position is intended, even if fifty or sixty people may apply, all of whom may fit the requirements.
I'm not saying that that is what happening in your case. It may simply be very poor manners.
I don't know if this helped you at all.
It may very well be that you will have to leave your present employer in order to further your career opportunities. If you plan to do that anyway, it may be a good opportunity to bring this up at not just the monthly catch up, but advance up the chain of hierarchy to ask about why you were turned down, then ask how the higher ups would suggest you accomplish your goals. After all, you are a part of that company's culture, you are familiar with their practises, and it would certainly be less expensive for your present employer to retain an employee than have to start off from scratch.
I think I would definitely ask a higher up "how can I accomplish my goal?". Most managers love to be asked for their advice....
East Hill