Modding systems is legal here in Australia so I am okay.
I'm pretty sure they're not, and there was a conviction that means there is precedent and thus it's easier to convict in the future...
There was a conviction, but it was appealed and overturned by the high court:
October 6, 2005 - Australia's High Court, in a unanimous decision today, found modchips to be legal. Link
Also:
On December 5 2006, the Australian Federal Government amended Australia's Copyright Act to classify mod-chips as Access Control Technological Protection Measure (ACTPM) circumvention devices. However any console that employs a region code (or similar geographical market segmentation device) is not protected under the new laws. Law firms such as Minter Ellisonhave confirmed that if a games console contains a region code then mod-chips for that console are entirely legal so long as they are able to bypass that region code. All current games consoles (excluding the Nintendo DS and PS3) employ a region code on their games. In terms of multimedia content, all consoles that are capable of playback of optical discs employ region locking for commercially bought/produced movies: DVD (PS3, Xbox 360), UMD (PSP) or Blu-Ray (PS3) videos. Link
Pretty much, as long as console have regions on them, they are considered to be restricting trade, therefore the consumer has the right to remove this restriction. Either, they remove the regioning (which would make me much happier) or they put up with the fact that modding in Australia is legal.