The classification of operation provisions are, shall we say, a little convoluted and counter-intuitive. Just because a flight does not make a ‘profit’ does not mean it is classified ‘private’, and some profit-making flights are classified ‘private’. Once you understand the classification of operations rules, you will be at one with the universe (or a certifiable lunatic).
As I say, these rules are going to be changed any decade now, because in 1996 Commissioner Staunton recommended ‘that in respect of Civil Aviation Regulation 206 (relating to various forms of commercial operations, including regular public transport operations) urgent consideration be given to amending or replacing the Regulation to overcome the problems identified in the course of the Commission’. A building full of experts as well as Dick Smith and his taskforce are on to it.
CAR 2 is at the start of the regs (just after CAR 1) here:
http://scaleplus.law.gov.au/html/pas...0/PR000060.htm. Scroll past all the definitions in CAR 2(1) and you will find a whole bunch of very important not-so-fine print.