Three if you count Perth's local daily, The West Australian, which is owned by Seven West Media. That doesn't really change your point though. But, Australia is a small country (in population terms), and it only has six or so major cities, so I don't think we could expect vastly wider media ownership than we've currently got.
One could argue that we could add should, but we don't. We just think 23 million people can only support two news papers. That way we can claim there isn't a monopoly.
