What it means
A garbo is the rubbish collector, the council legend who rolls through at sparrow's fart and empties the bins. Proper Aussie shortening from garbage plus that very Australian -o ending. It's casual and usually warm, the kind of word you'd say without thinking till you miss bin night and suddenly the garbo is the most important bloke in the neighbourhood.
Usage examples
"Garbo’s coming Wednesday, so wheel the bins out Tuesday night or we’re cactus. I missed it last week and the kitchen smelt like a tip, mate."
"Leave the bins out tonight, the garbo comes round before six in the morning."
"The garbo waved as he emptied the wheelie bin, top bloke that one."
"The garbo flew past before sunrise and now we've got another week of stinky bin juice, unreal."
"Had a yarn with the garbo this morning while he grabbed the wheelie bins, absolute legend."
Where it comes from
It comes from garbage with the classic Australian -o tacked on, the same shortening pattern you get in words like arvo and servo. Garbo has been part of Australian everyday speech for decades as the casual, dead-normal way to mean the rubbish collector.