Yep - I've had no issues using NFC with card or phone app when in Aus, though I'd usually decline to pay a surcharge so use eftpos or cash instead.

There's a political move here (pre-election promises) to nail the banks on paywave fees charged to retailers.  I never worked for a bank, but in other businesses when a near zero-effort / high profit deal was at risk, that created a certain amount of panic and desperation to protect it.