Ah, you're right (I didn't read the whole document). In case you're interested, in other states there is a different criminal code (called the Crimes Act (1990) in NSW)[1]. The section on "child abuse material" (15A) is quite vague on what limits there are for something being "material depicting child abuse" and there is also a catch-all statement saying that something is also considered child abuse material based on " the standards of morality, decency and propriety generally accepted by reasonable adults".
In general I would be surprised if it was legal in any state. I also checked, and it's considered "objectionable material" in New Zeland[2].
[1]: https://www.legislation.nsw.gov.au/inforce/a0a6239c-5e99-6ad... [2]: http://www.legislation.govt.nz/act/public/1993/0094/latest/w...