Does an Indian citizen need a transit visa in Melbourne?

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It looks like you will need a transit visa. From Travellers eligible to transit without a visa (TWOV), among the other things you need to be from one of the eligible countries:

a citizen of Andorra, Argentina, Austria, Belgium, Brunei, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Federated States of Micronesia, Fiji, Finland, France, Germany, Greece, Hungary, Iceland, Indonesia, Ireland, Italy, Japan, Kiribati, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Marshall Islands, Mexico, Monaco, Nauru, Netherlands, New Zealand, Norway, Oman, Palau, Papua New Guinea, Philippines, Poland, Portugal, Qatar, Romania, Samoa, San Marino, Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Tonga, Tuvalu, United Arab Emirates, United Kingdom (including its colonies), United States of America, Uruguay, Vanuatu and Vatican

But it also says

[Or] an Indian official passport holder

I assume that the latter clause is for government officials .. but that is my assumption.

You should the try to apply for a transit visa at (Subclass 771) Transit visa

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