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As someone who lives in a jurisdiction where every single vote I can engage in is RCV (Australia; NSW) I can honestly say that it’s so much better than FPTP. I don’t know what the perfect voting system is (frankly a subjective topic as it currently stands; please feel free to correct me with statistically valid alternatives) but RCV at the very least means that I can (and personally have) never vote for a major party as #1 and I can know for sure that my vote has never been exhausted, because I’ve never left a blank box. We also have mandatory voting, which helps to keep things sane.
In Australia, government election funding is only ever allocated to the parties based on #1 votes, so I can also confidently say I’ve never contributed to a major party’s election coffers as I’ve also never donated to any major party. I obviously support one major party over the others, as based on my preferences, but I’ll always give the election funding to a smaller party or Independent.
RCV is a wonderful step to take from FPTP. I understand that it may not be democratically perfect, and frankly no representative voting system may ever be, but it’s a far cry better than FPTP. It’s a known concept that here in Australia politicians vie to represent the ‘middle’ rather than the extremes, because the vast majority of voters aren’t overly-enthused political lunatics. We still have our issues to be sure, but I’d rather that the political class fight over the centrist majority rather than court the political extremes in order to convince people to actually vote thanks to mandatory voting.
How come it's still leading to two major parties?
It's still not that old (~10 years or so iirc), it takes time for a third party to be major contentender. Earlier on you're more likely to see third party wins in more local than national level elections.
It's not an insta-win for third parties. But that's ok, because local elections matter, and that's where you'd typically see results first.
We have four Major Parties - Labor, the Liberals, the Nationals, and the Greens. If you understand their relative power based on our system of government, you’ll see that we’re somewhere in between the US and the EU with regards to representational democracy. It’s not great, but in the Anglospheric context we do pretty well because the others don’t have our combination of Ranked Choice Voting (RCV), Proportional Representative Voting (PRV) and Mandatory Voting.
Maybe it's just to me, but liberal/national coalition and labor seem like the two major parties, green is barely at the table still.
If you exclude the coalition, national has 4 times the representation of green, and liberal 3 times that.
Just my opinion here, but it's still two major parties, with the thirds coming up in ranks and getting some momentum going. It'll be a good day imo when the greens overtake the nationals (and maybe one day the liberals), but I personally don't see it as representative of the people yet. Improving, but still functionally two parties.
I guess it depends on your definition of ‘major’. I think in a pluralistic democracy, any party that represents 10+% of the population meets that criteria. Of course, from the perspective of a two-party system 10% doesn’t seem like much, but it’s significant enough to have held the balance of power many times since the Greens came into existence in the ‘90s.
Labor is the largest single party in the Lower House. The Liberal Party has (almost) never gained a true majority. The National Party, with whom the Liberal Party coalesces (known in Australia as The Coalition or the LNP) is our current major opposition, and they only hold that position as a coalition. The Greens regularly poll between 9-12%, which causes our Federal Senate to end up giving them a significant amount of power. We also (thanks to changes a recent government made) have a significant crossbench made up of The Greens, minor parties and independents. Our current senate (and most previous Senates) has many potential ‘kingmakers’ (including previous AFL legend David Pocock, Jacqui Lambie and others) which mean that governments can’t pass legislation without courting those outside their party.
To the outsider it may seem that we only have two parties, but in our context we understand it to be more complex than that. Many Australian jurisdictions have known minority-government, government-by-coalition and Lower House government tempered by Upper House diversity which tempers the passage of legislation.
Like I said, it’s not a perfect system (and pretty far from direct democracy) but we sit in this interesting position between the absolute Two-Party System of FPTP jurisdictions and other systems that produce 5+ parties that need to form government together. Our system is far from perfect, but it’s not terrible.
Long answer, it's complicated as usual. Short answer: single member electorates.
Not surprisingly, the senate (our upper house at the federal level) is much more representative than the lower house, because they have very large, multi-member electorates.
If you live in a safe seat, your vote only counts for election funding (last I checked $2ish per 1st preference).