LB, my understanding is that the states that ceded powers to Canberra in the 1920's CANNOT legislate about aircraft. That is also why local government in places like Victoria cannot prohibit you from using an aircraft on your property, as many of the so and so's would love to do....... To put that another way the Victorian Government doesn't have the power itself, so it can't delegate the same to a council.
Commercial land use as an airport (ie a business) they can stop, but that is under a different head of power.