I doubt a technical solution is really going to work here, the filters they are proposing will be trivially bypassed by anyone with even a tiny speck of ability.
All it's going to acomplish is a giant australian taxpayers moneysink and increased costs for ISPs that will inevitably push the costs downstream to the end user.
Additionally, I would give it 3-6 months before it's being used to attempt to block p2p under the guise of "There is porn on the p2p networks! Oh noes! Think of the children".
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