The only real evidence that counts is this: Three people have been issued enforcement (third strike) notices, none have gone before the tribunal. Therefore, nobody is interested in actually enforcing the SkyNet laws, your guess is as good as mine as the content industry reps are not saying. 

The language of this debate is interesting. 

Internet pirate = criminal. NO it doesn't criminals are charged under the Crimes Act. 

Internet piracy = stealing/ theft. NO it is breach of copyright, different law. You can call a duck a horse but that doesn't make it a duck. 

Using VPN/ DNS blockers is illegal. NO it isn't, violating a company's Terms and Conditions is not the same as breaking the law. 

My fav is the quote from the Stuff article a few days ago saying the fee for processing the notices should be  reduced from $25 to 'pennies', the smallest US unit of currency.