I guessed the same, but according to Wikipedia:
The name wallaby comes from Dharug walabi or waliba.
I’m not sure how modern anglicisation works but I assume what’s given there is considered the most accurate spelling of the indigenous word. So “wallaby” isn’t too far off.
Are we really so far down the “obligatory memetic envelope because apparently just stating opinions isn’t socially acceptable any more” slope that we’ve dropped past “can’t stop thinking about x lmao” and on to “i was talking to my sister and, get this, i said x”?