Here is another article about the Mod chips and the court case. Its only a small article but does have one of the better arguments for it being allowed in Australia, that being:
"In Australia, PlayStation games come in PAL format, as they also do in Europe, but imported games from regions such as North America or Southeast Asia requires a console that will play NTSC games; without a modchip, an Australian PlayStation console can't play an NTSC game."
Like PC games, in Australia, we can get them in from either region! One day we can buy a game and it will be a US release, next day we can go buy another game and it will be the European release! Us poor 'old' Aussies dont know where we stand when it comes to obtaining patches etc? Do we go for the US or Euro updates?