Australia is dystopic in more ways than one[1], so this unfortunately does not surprise me.

I probably do not have to point out the issue with the soundbite, but I am doing it anyway: The “laws” of mathematics are valid across all of existence. Last time I checked, that includes Australia. As a matter of fact, I have personally stored encrypted communications with an Australian vendor after the law went into effect (not that I knew about that law in particular). And I can confirm that the communications were indeed still encrypted.

1: https://www.youtube.com/watch?v=1kYIojG707w (Honest Government Ad | Our Last Fair Election?)