ANU if you can get into the PhB. Sydney if you can't. Otherwise, Melbourne.
EDIT - ELABORATION:
Ok, so basically, as a preface to this, English in Australia is a little bit dead, but then again it's dead in a lot of places. That said, Sydney still has a very decent raw English faculty, so if you're just looking for coursework, that's the place to go.
I recommend PhB at ANU above all else because the reading courses are simply superb. You don't want to go there for straight coursework (it's decent, about the same level as Melbourne's I suppose), but reading courses (which are PhB-specific) basically allow you to do whatever you want in a subject basically - you get to "design it" yourself. This semester I'm doing a reading course in the literature of Asian Diasporas (so Asian-American/Asian-Australian literature); next year, I'll probably do a course in either Shakespearean Tragedy, or Contemporary Australian Literature. Or both.
If you're staying in Melbourne, just go to Melbourne. The coursework there in English is still better than Monash's, from what I hear, athough it's not as good as USyd.