He’s absolutely correct by the letter of the law, however common sense should have prevailed and he should have realistically said nothing to you about it.
I just read through the Queensland police guidance on acceptable excuses for carrying a knife and;
a person may carry a pen knife or swiss army knife for use for its normal utility purpose.
So the officer is not correct in accosting somebody for carrying a small utility blade by their own advice. Unless you said something stupid like you had the Leatherman for self defense instead of general use for repairs and stuff.