And more than that...
Yes, technically it is 4G according to the ITU's current definition.
BUT the legislation that the ACCC enforces doesn't care. It cares whether calling it 4G in Australia is misleading or deceptive. If you have a Samsung Galaxy 4G and a Velocity 4G and a Note 4G and a 4G MiFi device and an iPad 4G and all of those things can connect to the (only) network in the country advertised as 4G, EXCEPT the iPad. Then there's a problem. Line all those devices up in a row and the average consumer would expect that the iPad 4G could connect to the advertised 4G network just like those other devices can.
And if the statement is misleading or deceptive, or people (normal, non-technical people) are likely to be misled or deceived, that's a breach of the Trade Practices Act which the ACCC enforces.
It's not a technical discussion. It's a marketing discussion. Sort of.
And, it's not a matter of it supporting an LTE frequency that Australia doesn't have yet. It's a frequency Australia will NEVER have. The AT&T and Verizon 700MHz bands will NOT be released in Australia in 2013. It'll be other bands in the 700MHz range.