In the late 1970s Olsen formed two punk, post-punk bands, as leader and vocalist, as well as being a key figure in the Melbourne little band scene. His punk bands included the Reals and the Young Charlatans. Aside from Olsen on guitar, the Reals' line-up was Peter Cave on drums, Gary Gray on lead vocals and Chris Walsh on bass guitar. At the end of 1977 he formed the Young Charlatans with Janine Hall on bass guitar, Rowland S. Howard on guitar (ex-Obsessions) and Jeffrey Wegener on drums (ex-Saints). Australian music journalist, Clinton Walker, described this band as having "inner-city 'supergroup' status from the outset and helped pioneer post-punk rock in Australia."