I have an iPhone SE 2020

Thank you for those details Knightal,

In order to enjoy Lossless audio, and even Dolby Atmos, you need an active Apple Music subscription. This article discusses that more: About lossless audio in Apple Music.

Based on your screenshot, and seeing 'Join Apple Music', you do not have an active Apple Music subscription. This is also why you are limited on seeing these options in Settings > Music. Apple Music is available in Australia. You can find out which Apple Media Services are available per country/region here: Availability of Apple Media Services

In order to subscribe to Apple Music, check out this article for steps and pricing: Join Apple Music on your iPhone, iPad, iPod touch, Mac, or PC.

Cheers!

Hello Knightal,

Thank you for reaching out to Apple Support Communities, and we'll be happy to help in any way we can. We understand you're having issues with playing lossless audio on your iPhone. Check out this link for information about lossless audio in Apple Music, compatible devices, and how to access it here: About lossless audio in Apple Music

"You can listen to lossless on an iPhone or iPad updated to iOS or iPadOS 14.6 or later using:

• A wired connection to headphones, receivers, or powered speakers
• The built-in speakers
• To listen to songs at sample rates higher than 48 kHz, you need an external digital-to-analog converter."

We hope this helps.

Cheers!