A blue water Navy, not proximity, is what is required to invade and control Australia. India and Indonesia are a non-starter given that prerequisite, and China is probably 10-20 years away from being able to accomplish this (if they chose to do it). Plus the Chinese are more concerned with the South China Sea and regional naval superiority when compared to invading continents.
Also, Pine Gap. All of the China is coming and the US is going to leave us hanging out to dry hubbub conveniently ignores this fact.
Current navy size seems less relevant than what it could be if they were planning to invade Australia. If I decided to invade an island nation my first step would be to build enough boats.
India and China are also reasonably close.