I believe ADS - B out provides for the exact identification of any aircraft using it, and ADS - B equiped aircraft fitted with an aviation quality GPS, broadcast postion, altitude and speed to Airservices receivers around the country continuously, In theory then, the location of every aircraft so equipped is known at all times, flying or not. Aviation anonymity disappears for all pilots.
The first part of you statement about identification and altitude is true. The second part is not true. The location of your aircraft is only know if
a) you have your transponder turned on. (ie if you are not flying you can't be seen)
b) you are in range of an Airservices ADS-B receiver. The coverage of ASA receivers can been seen
here. To be seen at 500ft you would basically have to be overhead one of the receivers. The automated program would be difficult to create because how would it know that you didn't have a clearance. It still would rely on the controller identifying that you are in controlled airspace without a clearance and reporting it manually.
I don't dismiss the rest of your argument however. You right that it could be kept indefinitely and used against you. It is possible to set up your own ADSB receiver easily and cheaply and by extension CASA could possibly do this if they were using it to gather evidence against a particular operator (I have no idea if they are allowed to do this.)
Personally, I drive a car everyday and it is subject to speed/redlight/drug/ alcohol enforcement. I have accepted this because it is for the better good of my and my family's safety. I cop the odd few ks over the speed limit fine every now and then because I was careless or not paying attention. Similarly I know where the speed/redlight cameras are on the routes that I regularly travel and make sure I am complying. I have a GPS that tells me where most of the others are when I am in unfamiliar area. (A VCA warning feature on the next versions of Ozrunways Shagpile?) Everything I say, click on the computer and write down at work (I am an ATC) is recorded and can be used against me. It is one of the conditions of my employment and I have accepted it.
Every time you switch on your phone, us an ATM, walk into a 7eleven, fill up your car, you are being watched in case you break the law and they need the evidence to prosecute you. It's part of living in the 21st century.
