The current state of VCE LOTEs - being dominated by native speakers - is ridiculous and counterproductive. Fantastic, you're bilingual, do you want a special medal as well? You are given a unique opportunity to score extremely well in a LOTE subject. You also have to understand though that the fundamental nature of LOTE subjects is that they're geared towards those who picked the subject up in Year 7, and worked their butts off to learn a new language. Those are the people I truly respect in the whole LOTE system, and they are also those who get fucked over in most languages. It's ridiculous that someone cannot pick Chinese up in school anymore and expect to continue with it to VCE. Attempting to maintain the status-quo by calling suggested solutions 'racist' is deplorable.
The one instance in which this does not apply is for those in FL subjects, whom I really feel for. Not only are they tested to a higher standard, they also have to compete with fellow native speakers, and the scaling is not as high.
And to those of you whom are native speakers (regardless of where you lived) in a non-FL LOTE subject, let me tell you what's going to happen. Non-native speakers are going to leave your subject, as it becomes too hard to score well, even with the scaling bonus. You then move lower down the bell curve yourself. It becomes harder to score well. Non-native speakers leave the subject at an even greater rate. Scaling simultaneously goes down as well, as it's those who learn the subject as a second-language who tend to drive it up - they do very well in their other subjects. You're left with something equivalent to a FL subject - hard to score well in, and does not scale up as much anymore either.
And I'm writing all this as someone who benefited immensely from being a native speaker in a LOTE subject.
My solution would be to have everyone doing a language in one subject. The native speakers' scores would be calculated against the entire cohort, so they will benefit from competing against those with a lower degree of ability. Meanwhile, the non-native speakers would only compete against themselves. This will ensure that non-native speakers can learn a second language throughout their schooling, and not have to expect to be punished for it.