CASA told me they cannot control SAFA until they do become P149 valid. a tricky situation!
If someone in CASA told you that, Kurt, that someone is either incompetent or bull****ting.
The current exemption relevant to you (CAO 95.8) was issued by CASA - the most recent version was issued by Ms Spence on 20 Nov 2021. That exemption can be changed. That exemption operates by reference to a "relevant sport aviation body". Guess who decides whether or not a body is a "sport aviation body" for the purposes of the aviation rules? If a body is 'out of control' it can be dealt with. CASA just repeals its status as a sport aviation body for the purposes of the aviation rules. It's actually CASA's job to keep them under control.