Wren old mate;
Yes, it is less than subtle that "rule BY law" and "RULE OF LAW".
When the government of the day allows the RULE OF LAW to be so abused they have serious questions to answer. However don't hold your breath with this current lot, (or for that matter, the Opposition Transport guy who is more trussed up with party politics to bother with such frivolous stupidity).
The Australian Constitution guarantees free trade between the states, however Reg 206 probably is also unconstitutional if you can't take your toolbox with you, as is the concept of The Rule of Law.
God help us all.