There is a presence of street beggars that doesn't exist back in Australia / New Zealand that are quite noticable here (although less than in other european cities). Knowing how die Bayerische Polizei operate I am surprised they aren't surpressed as well. I just wonder why that is?

You’re right. The peaceful homeless camp at the Kolumbusplaz vanished from one day to the next but the accordion beggar near the Viktualienmarkt remains. No clue.