Another Australian here!
We live in a house with a backyard and a hill's hoist.
We line dry all our clothes, sheets, towels, etc. We did buy a dryer a few months ago - we have a DD who is 4 months old in cloth nappies so we needed the dryer in case of emergencies!
The dryer rarely gets used, maybe once a month and normally for more emergency things, like needing to quickly wash and dry pajamas or something like that.
I have never had any problems with bird droppings or dust on my clothes that have been hung out to dry. I also dont rewash if they get rained on, i consider that a rinse!
When i lived in an apartment in Singapore we always dried our clothes outside. Basically you put you clothes on a big bamboo rod (usually inserting the slevees, pant legs over the rod so they cant fall off) then put that whole thing out the window where it sticks straight out perpendicular to the building. Underware was dried inside or outside, depending on your mood.