Have to book flight and hotel before they will process visa application?

Why do we have to book a flight and a hotel before they will process application in Perth Western Australia. My wife will travel to Bangkok and then with me to China. The Consulate in Perth refuses to process the application until they have a confirmed flight and hotel booking.

We (our company) will not book my flight or my hotel until I have my entry permit which is how they do it here in Bangkok.

The officious young lady in Perth consulate refuses to process the application until they have the confirmed booking for my wife, which if we need to change will now un-necessarily cost us money, as will an application to "expedite" the application in Perth.