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To be honest, I still rate Youtube Premium - the bundle that includes Music and ad-free Youtube is just too good a deal, even with the price hike. Some of the alternatives may be a bit cheaper, but you end up paying more if you still want to hang onto ad-free YT.
Given you said budget isn’t an issue, I’d personally still stick with YTM, but I haven’t personally had any issues with its radio function, and while I don’t listen to much Aussie stuff, I do have pretty esoteric tastes and it’s generally pretty decent.
I highly doubt the economists in Treasury were advocating for this. It’s 100% a political decision.