If a replacement for lawn is desired, then use a planting of suitable groundcovers.
A green groundcover is better value than mulching in the long term.
Acacia lasiocarpa flat
*
Gastrolobium latifolium ‘flat’
Adenanthos cuneatus “Coral Carpet” pbr
Dampiera diversifolia
Banksia blechnifolia
Dichondra repens
Eremophila glabra “Carramar Carpet” syn “Kalbarri Carpet”
Hibbertia grossulariifolia
Grevillea crithmifolia “Green Carpet”
Kennedia prostrata
Grevillea nudiflora
Selliera radicans
Grevillea obtusifolia “Gingin Gem”
Scaevola striata “Blue”
Grevillea tenuiloba
Scaevola striata “Pink Perfection”
Hemiandra pungens alba
Viola hederacea
Hemiandra pungens purpurea
Kennedia coccinea “Coastal Carpet”
Thryptomene baeckeacea (prostrate)
Legend:
* Can tolerate walking traffic occasionally