If you scroll to the bottom and still awake, you will see that Queensland Airspace is defined for the purposes of the direction as the airspace located over Queensland. Pretty clear cut it would seem.
Yes but there is the small matter of jurisdiction. A state government can write all the aviation rules they want but many are not "legal" and so become un-enforceable.
One that springs to mind was a certain state trying to restrict aircraft to fly over wilderness areas above 5000 feet agl. They had no joy with that.
Not that that has stopped both State and Federal governments bending the constitution during the Covid pandemic.