I'm not loving the direction of tech regulation in Aus.

While what I'm about to suggest is a bit icky, I really think this is a case where professional lobbying could help. Only companies that work directly in this field understand the difficulty of managing this sort of system.

From varying local laws and customs and unclear definitions it makes it very difficult. (eg. Why is 9/11 video an acceptable broadcast despite the larger death count? The difference seems to be the intent of the person recording the video, but I'm not sure).

This legislation seems like 'someone should DO something' in legal form

The people I'm in regular contact with are actively moving away from any Australian services they might using. All are moving away from Bitbucket, Jira and Confluence. And yes, some have privately commited to not hire any Australian citizens.

And this is not because of some sort of knee-jerk 'protest' against Aus politics, its because regulations in our own countries prevent us from using compromised services, state-compelled or not.