It always seems a pity to put Penny's dog poo in the ordinary rubbish bin, as it should be useful compost. I've just read a blog with instructions on how to build my own compost pit, so I think I'll give it a go. It's basically a rubbish bin with holes in it, buried in the ground, with rocks in the bottom for drainage. You need to buy septic starter, which I haven't heard of. I'm not sure we have that system in Australia. But it seems worth investigating.
Interestingly, our local council has just begun selling a similar system that is buried in the ground - for normal composting. It's called The Green Cone. I think it might be possible to put doggy waste in it - I'll check it out, I think.
I think the idea for the dog waste compost may have come originally from a site in British Columbia called City Farmer, which is reported at plantea.com. There's some additional information, which answers my concern about dog poo in the garden - you don't actually dig out the doggy composter. The faeces just seep into the subsoil as you add material. You don't put it in the garden at any stage. I think that's the principle behind the Green Cone, too - very timely in southern Australia where the level of moisture in the subsoil is now so low because of the dry conditions.