You don't use exponentially more fuel, but cubically. Exponentially is not just a word for "quickly", but a function.
And anyways, that isn't only the case for speeds higher than 80, but for every higher speed. So it's not like there is an objective sweet spot.
The 80 kph rule of thumb is actually part of the design parameters of most regular cars. They are built to be most fuel efficient at 80 (or probably more accurately aerodynamic designed for 80).
I was using exponential colloquially (and fair cop given its usage during Covid), but I think you're just using cubic as a rough guide also due to air resistance. I'd note there are no extra gears at the higher speeds, so you're probably less efficient on the tyres etc.
Counter point: The Aus driving tests don't prepare/train drivers for the current highway speeds as it is.
If we implemented a system like Finland's, where new drivers are actually taught how to handle vehicles in adverse situations and conditions then I agree raising the speed limit would be feasable.
But that would require a huge state gov investment in training infrastructure and that will never happen.
Also,
The current condition (and ongoing condition) of Australia’s primary road surfaces are unsafe even at the current speed limit.
The combination of poor initial construction, decades of neglect, bushfires, floods, abuse by speeding and overweight road users has resulted in a regional road network that is so far gone that the most cost effective solution is to tear up whole sections and start from scratch.