The current system of UAV laws in Australia is a patchwork of laws that does not cover privacy with UAVs very well according to their Serious Invasions of Privacy in the Digital Era report.
You can get the report here, in PDF, summary, or hard copy format.
According to ABC Rural, there needs to be a uniform series of privacy laws for UAVs across the country, to even out state and territory laws. A cattle group has come out in favor of the changes as they are worried about animal activists and other “unauthorized” uses of drones.
It will be interesting to see where these law changes go, as of now you can fly UAV as a hobby or for commerical purposes with a certificate from the Australian Civil Aviation Safety Authority.