If you 'stick with government on this one' with respect to encryption, you're missing the point. If the weakening of the encryption took the form of a 'back door', it would be more obvious.
Although the legislation itself seems to CLAIM that it does not involve 'back doors', it DOES seem to involve circumvention of encryption for law enforcement, etc.. so how are they going to accomplish this?
I suspect it will be some 'weakening' of encryption, such as 'man in the middle' SSL certs or disclosure of server private keys, so that traffic can be easily decrypted.
In any case, take a look at what's happening over here in the USA, involving certain 'rogue' factions wtihin the government and their uber-LOUD 'howler monkey' protesters/activists help to drive it in the public eye. Even when 'innocent until proven guilty' is CLEARLY written directly into the Constitution, you have "trial by emotion", in the public eye, where you're PRESUMED GUILTY until PROVEN innocent, based on 'political correctness' of the day, assisted by a willing press corps. Couple that with FBI interviews and "special investigations" that consist of 'perjury traps' for political enemies, in which you're JAILED for LYING [or potentially impeached, *cough* *cough*] because of the trap [and in many cases, some have spent YEARS in jail until the appellate court figures out they were SET UP and ACQUITS them, damage and 'mission of the moment' accomplished anyway].
A 'bad' example of a perjury trap:
Cops: do you sometimes pleasure yourself to on-line porn?
You: No way!
Cops: is that your statement under oath?
You: Of course it is! How dare you insinuate [etc.]
Cops: Well look what we have here, it's your BROWSER HISTORY and images taken through your web cam, which we compromised using a special added script we injected into the web pages... oh, my, you're such a NAUGHTY BOY! And what were you looking at? WEll I'd say 5 to 10 YEARS for LYING TO INVESTIGATORS!!!
And these dirty, politically-motivated 'investigations' are a way of COERCING "testimony" from political adversaries in order to take out OTHER adversaries, a filthy, sneaky, "tin horn dictatorship" way of operating. Might as well wear BROWN SHIRTS with red,white, and black armbands...
I don't think Australia is immune to this kind of corruption. The USA obviously isn't. And giving gummint MORE power to go on a "fishing expedition" into YOUR life, or anyone else's for THAT matter, is a very, very, very, very, very, very, very, very, BAD idea. History CLEARLY shows what happens when there's "too much spying going on out there" by gummints on their own citizens. "Does not end well" is an UNDERstatement.