While the legislation introduced by the Australian government is certainly worrying and should never had been enacted, I've always operated under the assumption that if any government agency around the world really wants to get to my encrypted data or traffic, they'll likely be able to use/abuse some sort of loophole in their current processes and laws anyway.
If that's the case then why would the Australian government need to open the door even wider? The implication is that privacy laws pose inconveniences.