Yes, this is also the case in Europe (EU passports go through automated gates very similar to the Australia/NZ ones). Your passport contains biometric information about your facial structure, and the facial recognition is used to verify it.

Given the somewhat-recent studies[1] which show that the vast majority of border guards (unless they happen to be "super-matchers") have a 1/7-or-worse failure rate when trying to check a person's passport photo, I think it's quite understandable to do the facial recognition electronically.

But such a system should only be used for immigration purposes (where identity verification is very important to get right), not for getting onto a plane or just coming into the waiting areas of domestic airports.

[1]: https://www.abc.net.au/catalyst/stories/4185916.htm

It is worth noting that while it's totally possible to fly domestically in Australia without having your ID checked, you're still required to have one.

I'm actually quite happy with the facial recognition cameras at the Australian border - they make things a lot faster than they used to be from my experience.