The term itself is a misnomer because there is no generally accepted definition of a penny stock. Some consider it to be any stock that trades for pennies or those that trade for under $5, while others consider any stock trading off of the major market exchanges as a penny stock. However, confusion can occur as there are some very large companies, based on market capitalization, that trade below $5 per share, while there are many very small companies that trade for $5 or more.
If we define a penny stock a stock that has a share value of a cent or less, which is the definition for penny stock at wikipedia, then finding penny stocks on ASX shouldn’t be that difficult.
As a matter of fact I found an article that explains how to find Australian penny stocks quite easily.