Axiom,
I do not for one minute purport to have any in depth knowledge or experience with the Australian Constitution. Probably only on a par with Denis Dinuto in The Castle
. As to whether or not you are in the "Twilight Zone". That is a question best answered by yourself.
What I do have though is a fairly good understanding of CARs CAOs and AIP as they apply to me. Should I fail to abide by the provisions of those documents then I expect to be dealt with by the body which issues my licence and associated privileges or as you seem to prefer, authorisations. If I don't like it, then I don't fly but I certainly don't take it upon myself to decide which provisions I will chose to abide by and which I will not.