If you're going to start using logic and reason with this issue then that government will simply outlaw those as well. This government has already set a precedent of having overridden the basic limits of mathematics before. See also: anything to do with encryption.
I doubt that he imagined that he could write a law that would force the encryption algorithms to yield to the ASIO. It was all about using a big stick to force people to help break encryption, by inserting back doors etc.
Sure he was a lawyer and banker and probably never should have been involved with things like encryption and the NBN, but that's politics for you.