I understand that BBSW is the reference rate for financial instruments while AUD LIBOR is the interbank rate benchmark. However, since AUD LIBOR has been discontinued due to the rigging scandal, can BBSW be considered as an interbank benchmark rate in Australia?
AUD LIBOR is no longer quoted. See list of fixes: https://www.theice.com/iba/libor
AUD BBSW is quoted by prime AU banks and is based on the price of a discounted security while what was formerly the BBA AUD LIBOR was based on quotes by a different (but overlapping) set of rate contributors on a theoretical loan/depo.