To further the point, the placebo effect is at work even when you take medication with an active ingredient.
Pain reduction, for instance, occurs much faster than is possible by purely chemical effects when you take a tylenol. I've heard up to 40% of the painkilling effect is placebo, and it happens moments after you take the pill. You're anticipating relief from the drug, and so your brain helps things along.
Homeopathy is garbage, and it should be treated exactly as the Australian government is treating it. But it's worth noting that a lot of these people DO have noticeable health benefits from being in contact with a homeopath. But homeopaths take time to talk to their patients and understand what the problem is, and sometimes that in and of itself is of benefit. On top of the vials of water, many of these homeopaths will make dietary and lifestyle recommendations that a regular doctor might not consider at first. Going for a doctor's appointment and feeling ignored doesn't increase one's sense of well-being.
What we should really be doing is providing more layers to our healthcare systems that centre less around overworked doctors prescribing medication, and more around trained health professionals (nurses, nutritionists, etc.) that can take some time and help you figure out what your trouble is and whether you really need to see a doctor, or if maybe you just need to cut things out of your diet or walk more or whatever.