This is a RA-Aus matter that has to be resolved, from my information, by them.
That's a very simplistic view of the situation.
How would you like to manage over ten thousand pilots, close to five thousand aircraft and more schools than CASA has to deal with on a shoe-string $2M a year member paid budget while your unlimited tax dollars are doing the same for VH jocks?
The LSA issue is purely one of CASA's making. They could have just said they accepted the ASTM standard and allow these aircraft to be flown at 600kg but nothing else changes in paperwork and procedures and be done with it. Instead, they made a parallel path with different rules for different aircraft within RA-Aus and the overloaded system cracked.