A "little bird" tells me that CASA wants to divide "private flying " from all other flying, with a very limited definition of "private flying" , being limited to something like 1500 kg, four place. Whether night of IFR being included is apparently a matter of contention. This would all be run by RAOz, including flying training.
And thus we divide and conquer.
....By pandering to an Associations greed and lust for power.
First test: will the GA associations stick together or will they break ranks and lunge for a self interested prize?
My guess is that RAA will fold and grab for it.
I can see why CASA would think this way; RAA has a big membership base and what's left of GA after they were split off can be swept into a small dustbin. It would be a minimal change at CASA, but it would confirm Australia as a bizarre aviation environment while destroying any hope of jobs investment and growth in the GA sector.
Off topic but Qantas, Virgin, Rex and Co. probably couldn't give a rats backside about the rules and regulations because they act as a very efficient economic barrier to entry against any potential new market entrants.