One has to keep in mind that Australian laws are those established for the smooth running of a set of penal colonies. In Australia, there is no bill of rights, just an informal assumption that the authorities will treat you well as long as you’re not a “ratbag” (troublemaker)
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“Chilling” is entirely the right word. Losing the right to encryption in the digital, networked age is synonymous to losing the right to personhood.
What the Australian authorities are bragging about here is nothing less than a broadside on democracy itself.